CHAPTER-1

INTRODUCTION

INDUSTRY INTRODUCTION
Till a few years back, the most popular forms of entertainment available to the youth in India
were the traditional forms like movies, music, television and sports. Gaming as a culture was a
concept, alien to India. The potential market for gaming has emerged over time and its growing
popularity can be attributed to the new digital generation. In a country with burgeoning youth
and middle class, more than 50 percent of the youngsters who fall in the age group of 18 to 35
constitute the target audience for gaming.
When gaming started in India, it was primarily an outsourcing hub for foreign gaming companies
providing game development services. The console and PC-based games resulted in a very small
percentage of the gaming population. Power issues, low smartphone base and Internet
penetration were some of the reasons that further attributed to a small gaming market in India.
The industry which had just about 25 companies at the time when I started out has grown to
more than 250 game developers today. I have been at the helm of affairs of Octro Inc since 2006,
having built one of the most complex mobile communication backend, a technology we used to
create real time multi player social games that can scale up to millions of concurrent players.
Frankly, what prompted me to step into the gaming industry was the fact that out of the 100 top
grossing apps on Google Play store, 60 percent of the apps were games. This was an indicator of
the revenue generating ability of the apps.
Although, mobile gaming in India is still in the nascent stage, it is predicted that this industry
will generate great opportunities for game developers over the next two years. According to a
KPMG-FICCI report, it is predicted that from the current Rs.560 crore, the mobile gaming
segment size will jump more than triple to Rs.1,800 crore by 2017. Further, with 110 million
mobile internet user base, cheap 3G plans and affordable smartphones, and highly untouched T2
& T3 markets, Indian gaming industry will grow into one of the best markets in the world.
The industry today is pegged at about $890 million in size as per NASSCOM, with at least two
companies coming up every month and growing at around 30 percent every year. While Octro
was the category creators for gaming in India, it has led to several companies entering gaming
leading to institutional funds being directed to them to enable growth. This spurt in growth can
be attributed to the smartphone penetration, onset of 3G, free to download and play games and
democratization of game publishing.
Today one can establish as a gaming developer registered with Apple or Google. The market is
mainly mobile-driven as many people still don't have an access to online and console games,
whereas, mobile is easily accessible to all. This has increased the consumer base and data usage
very rapidly, giving the market the much needed push. This has led to a mushrooming of gaming
start-ups in India.
Gaming has created some successful customer engagement strategies which are dependent on
your ability to build two way communications with your customers and earn their trust and
loyalty. Console and PC games had a disadvantage as they did not facilitate quick feedback from

users unlike in smartphones where developers can get user ratings and comments on the games
in a shorter span of time. This has led to increased site returns, new visitors and registrations.
Besides the advantages that have accrued to the game, user experience has improved
dramatically as well. The users today have an edge as they can play games on a decent Androidpowered smartphone that could cost as low as Rs.5,000. This has been proven by Octro's user
base as well, which is Android led by more than 90 percent. So, the dependency on hardware and
power is a thing of the past and this has made playing games much easier which was not possible
earlier when PC's and consoles were the only option. It also gives the user the advantage to save
the game and exit and get back on board as per his convenience.
Gaming industry offers enormous scope for development and is attracting a lot of global players.
India being a cash savvy society, people are still not very comfortable with the idea to pay for
mobile games. Even downloading large file-sized games despite cheap gaming rates and mobile
internet plans has been a hindrance in the industry's growth. Monetization is still an issue for
both the local and global mobile game developers entering the Indian market. But, despite this
the gaming service industries have grown exponentially with more distribution oriented models.
Mobile games are extremely popular with the youngsters as an entertainment medium today. The
growing popularity of Android as a leading player in India has provided the developers with a
trusted platform to experiment with their ideas, and ensuring some positive outcome in the
coming future. Mobile phones are likely to become the preferred platform for gaming, in the
coming years, with the increase in use of portable devices and improved connectivity.
Indian gaming industry has really come of age. Having genesis in late 90s, when companies like
Dhruva Interactive and India games started developing and publishing games, today India has
more than 250 gaming companies, mostly start-ups aiming to develop the next Flappy Bird or
Candy Crush.
Picking Up From the Past
In the past, India was primarily an outsourcing hub for foreign gaming companies providing
game development services. It was mostly in the form of console and PC-based games that had
few takers. Power issues, low smartphone and Internet penetration, let alone WiFi availability
kept the industry in the Trial version.
Earlier, there was no local market opportunity. It was only about doing services for global
companies or making games for the feature phones that India Games and Nazara Technologies
did. India didnt have gaming as a mainstream form of entertainment, says Rajesh Rao, Founder
and CEO, Dhruva Interactive, started in 1997.
However, the industry really took off from around 25 companies in 2010 to more than 250 game
developers at present that are largely focusing on the Indian market. The industry today is around
$890 million in size as per Nasscom with at least two companies coming up every month and
growing at around 30 per cent every year.
The growth has to do with the smartphone penetration and democratisation of game publishing.
Today as an individual, you can publish a game by becoming a developer registered with Apple
or Google, adds Rao who also chairs the Nasscom Gaming Forum.

The market is mainly mobile-driven as people dont have access to online and console games,
and mobile has been accessible to all. This has increased the consumer base and data usage very
rapidly, helping the market to start maturing. Hence the number of gaming start-ups has also
increased, says Nitesh Mittersain, CEO and Founder, Nazara Technologies.
Users today can start playing games on a decent Android-powered smartphone that costs as low
as Rs 5,000. Hence, the hardware drawback is gone. Also they dont need power every time one
plays games unlike for PCs and consoles. On the other hand, production cycles for console and
PC games used to be longer with huge investment. Console and PC games dont facilitate quick
feedback from users unlike in smartphones where developers can get user ratings and comment
on the games in a lesser time and hence can tweak the game as per users interest.
Four years ago, industry analysts predicted that smartphones would be the biggest threat to
handheld consoles like the Nintendo DS and Playstation Portable (PSP), says Vishal Golia,
Founder and CEO, Gamiana Digital Entertainment. He further adds, With the lowering of
historical entry barriers to game development, especially the walled gates of console gaming,
Indian developers now believe that they can succeed. Foreign giants like EA and Ubisoft have
had Indian presence for a long time, helping nurture the local talent. So the ecosystem is building
up.

COMPANY INTRODUCTION

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Competitor Analysis
Brand Consultancy

Brand Evolution - Define target audience, brand values and principles,

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Brand Marketing - Media and Campaign Planning (ATL/BTL) | Social Media and
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Brand Review - Brand / Marketing Audit | Brand Re-positioning | Re-building

Brand Image | Re-branding

Launch Planning - New App Launch | New Products | New Brand Launch | New
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Management Consulting - Report Making Format | Business Planning |

Budgeting
Design
Web & Digital - Website Design| App UI/UX Designs | E-mailers | Digital Media Ads |
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Communication - Print, Outdoor | Brochure, Leaflets, Posters | Direct Mailers

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CHAPTER-2
LITERATURE
REVIEW

Effects of Violent Video Games on Aggressive Behaviour, Aggressive Cognition,

Aggressive Affect, Physiological Arousal, and Prosocial Behavior: A MetaAnalytic Review of the Scientific Literature

Research on exposure to television and movie violence suggests that playing

violent video games will increase aggressive behavior. A meta-analytic review of
the video-game research literature reveals that violent video games increase
aggressive behavior in children and young adults. Experimental and nonexperimental studies with males and females in laboratory and field settings
support this conclusion. Analyses also reveal that exposure to violent video games
increases physiological arousal and aggression-related thoughts and feelings.
Playing violent video games also decreases pro social behaviour.

Violent Video Game Effects on Children and Adolescents

Violent video games are successfully marketed to and easily obtained by children and
adolescents. Even the U.S. government distributes one such game, America's Army, through both
the internet and its recruiting offices. Is there any scientific evidence to support the claims that
violent games contribute to aggressive and violent behavior? Anderson, Gentile, and Buckley
first present an overview of empirical research on the effects of violent video games, and then
add to this literature three new studies that fill the most important gaps. They update the
traditional General Aggression Model to focus on both developmental processes and how mediaviolence exposure can increase the likelihood of aggressive and violent behavior in both shortand long-term contexts. Violent Video Game Effects on Children and Adolescents also reviews
the history of these games' explosive growth, and explores the public policy options for
controlling their distribution. Anderson et al. describe the reaction of the games industry to
scientific findings that exposure to violent video games and other forms of media violence
constitutes a significant risk factor for later aggressive and violent behavior. They argue that
society should begin a more productive debate about whether to reduce the high rates of
exposure to media violence, and delineate the public policy options that are likely be most
effective. As the first book to unite empirical research on and public policy options for violent
video games, Violent Video Game Effects on Children and Adolescents will be an invaluable
resource for student and professional researchers in social and developmental psychology and
media studies.

Video games and education

Fully integrated into the everyday lives of millions of young people throughout the world, video
games are a vital part of contemporary culture and society. But the reaction of many authorities
and the majority of educators has been to discredit video games by assuming their negative
effects. After more than two decades of research, however, many studies have been published
that have gradually led to a more complex, nuanced, and useful understanding of video games.
This article focuses on one of the most interesting alternative perspectives--that of their
educational potential as teaching and learning tools. After justifying this point of view, we offer a
critical review of previous research on the subject; and finally reach some conclusions on the
advantages of using video games for educational purposes.

Exploring the potential of computer and video games for health and physical
education:
This study aims at critically reviewing recently published scientific literature on the use of
computer and video games in Health Education (HE) and Physical Education (PE) with a view:
(a) to identifying the potential contribution of the incorporation of electronic games as
educational tools into HE and PE programs, (b) to present a synthesis of the available empirical
evidence on the educational effectiveness of electronic games in HE and PE, and (c) to define
future research perspectives concerning the educational use of electronic games in HE and PE.
After systematically searching online bibliographic databases, 34 relevant articles were located
and included in the study. Following the categorization scheme proposed by [Dempsey, J.,
Rasmussen, K., & Lucassen, B. (1996). The instructional gaming literature: Implications and 99
sources. University of South Alabama, College of Education, Technical Report No. 96-1], those
articles were grouped into the following four categories: (a) research, (b) development, (c)
discussion and (d) theory. The overviewed articles suggest that electronic games present many
potential benefits as educational tools for HE and PE, and that those games may improve young
peoples knowledge, skills, attitudes and behaviours in relation to health and physical exercise.
Furthermore, the newly emerged physically interactive electronic games can potentially enhance
young peoples physical fitness, motor skills and motivation for physical exercise. The empirical
evidence to support the educational effectiveness of electronic games in HE and PE is still rather
limited, but the findings present a positive picture overall. The outcomes of the literature review
are discussed in terms of their implications for future research, and can provide useful guidance
to educators, practitioners and researchers in the areas of HE and PE, and to electronic game
designers.

Role of Video Games in Improving Health-Related Outcomes:

Video games represent a multibillion-dollar industry in the U.S. Although video gaming has been
associated with many negative health consequences, it also may be useful for therapeutic
purposes. The goal of this study was to determine whether video games may be useful in
improving health outcomes.
Literature searches were performed in February 2010 in six databases: the Center on Media and
Child Health Database of Research, MEDLINE, CINAHL, PsycINFO, EMBASE, and the
Cochrane Central Register of Controlled Trials. Reference lists were hand-searched to identify
additional studies. Only RCTs that tested the effect of video games on a positive, clinically
relevant health consequence were included. Study selection criteria were strictly defined and
applied by two researchers working independently. Study background information (e.g., location,
funding source); sample data (e.g., number of study participants, demographics); intervention
and control details; outcomes data; and quality measures were abstracted independently by two
researchers.
Of 1452 articles retrieved using the current search strategy, 38 met all criteria for inclusion.
Eligible studies used video games to provide physical therapy, psychological therapy, improved
disease self-management, health education, distraction from discomfort, increased physical
activity, and skills training for clinicians. Among the 38 studies, a total of 195 health outcomes
were examined. Video games improved 69% of psychological therapy outcomes, 59% of
physical therapy outcomes, 50% of physical activity outcomes, 46% of clinician skills outcomes,
42% of health education outcomes, 42% of pain distraction outcomes, and 37% of disease selfmanagement outcomes. Study quality was generally poor; for example, two thirds (66%) of
studies had follow-up periods of <12 weeks, and only 11% of studies blinded researchers.
There is potential promise for video games to improve health outcomes, particularly in the areas
of psychological therapy and physical therapy. RCTs with appropriate rigor will help build
evidence in this emerging area.

Explaining the enjoyment of playing video games: the role of competition

The tremendous and still growing popularity of computer and video games has
inspired Communication Researchers and Media Psychologists to investigate the
factors of the enjoyment experienced by the players. Apparently, the games'
interactivity allows for a continuous stream of challenging and competitive
situations that have to be resolved by the players. Competition is therefore
regarded a key element of the explanation of players' entertainment experience.
Subsequent to a theoretical explication, empirical evidence for the role of
competition in the playing process and the impact of competitiveness for selective
exposure to computer games is reported from a field experiment (N = 349) and an
online survey study (N = 795).

Effect of video game practice on spatial skills in girls and boys

A study of the effect of video game practice on spatial abilities in girls and boys was carried out.
Spatial performance, measured using two subtests of a computerized spatial skills battery, was
significantly better in boys than in girls during pretest assessment. Subjects then practiced on an
action video game, Marble Madness, or a computerized word game, Conjecture. Video game
practice was significantly more effective than the word game in improving spatial performance
on the posttest assessment; there was no significant interaction of gender with experimental
treatment. However, video game practice was more effective for children who started out with
relatively poor spatial skills. The pattern of results suggests that video games may be useful in
equalizing individual differences in spatial skill performance, including those associated with
gender.

Relation of Adolescent Video Game Play to Time Spent in Other Activities

Although gamers and nongamers did not differ in the amount of time they spent interacting with
family and friends, concerns regarding gamers' neglect of school responsibilities (reading and
homework) are warranted. Although only a small percentage of girls played video games, our

findings suggest that playing video games may have different social implications for girls than
for boys.
The rapid growth of video game popularity has generated concern among practitioners, parents,
scholars, and politicians. Not since the advent of TV has an entertainment medium been
subjected to such wildly ambivalent reactions or such skyrocketing sales. In 1998, revenues
totaled $6.3 billion in the United States and 90% of US households with children had rented or
owned a video or computer game.1 Particularly during adolescence, when social interactions and
academic success lay the groundwork for health in adulthood, there is concern that video games
will interfere with the development of skills needed to make a successful transition to adulthood.
Although it is generally assumed that most American adolescents spend a large portion of time
playing video games, the veracity of this assumption has received little empirical attention. This
was remedied by the Kaiser Family Foundation in 1999 and 2004 in representative surveys of
media use among 8- to 18-year-olds in America. It was found that 39% of youth played video
games on a typical day in 1999 and 41% did so in 2004. Although sizable, this proportion is far
from capturing the majority of American youth. Moreover, gamers spent an average of 26
minutes per day playing in 1999 and 32 minutes per day playing in 2004.
Even if most youth do not regularly play video games, it is still possible that game play will have
deleterious effects for those who do play. This reflects another concern regarding adolescent
video game play, that such play will distract from important academic, social, and physical
activities. If time spent in activities is zero-sum, then the assumption that time playing video
games encroaches on time available for other activities makes intuitive sense. This is essentially
the notion of the displacement effect.
Evidence from the few existing relevant studies shows mixed support for the displacement effect.
Egli and Meyers found little support that playing video games interfered with adolescents'
involvement in family life, reduced participation in active sports, or was related to poor school
performance. The Kaiser Family Foundation found that young people who were heavy media
users spent more time with parents, pursuing hobbies, and being physically active. Conversely,
Selnow found negative relationships between adolescent use of arcade video games and
participation in clubs and organizations. Kline found that adolescents who reported heavy game
play were more likely to put off doing homework, chores, and family activities.