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November 16, 2023by NetraTechnology3 comments

Indian Gaming Firms are Eyeing the Brazilian Market. Explore Why!

India is becoming a major gaming market; by 2028, it is expected that the industry will grow to $7.8 billion. Younger demographics, changing IT infrastructure, growing usage of mobile devices, and fast internet connectivity are the main drivers of the Indian gaming market. This growth is being further accelerated by the incorporation of technologies like augmented reality (AR) and the metaverse into computer and console games. The growth of the industry is also being aided by the government’s encouragement of game development, the increase in female leadership, and the move toward mobile and multiplayer gaming. Yet why are Indian gaming companies looking to Brazil? Let’s delve deeper into this article.

Indian gaming market

India, which has one of the largest youth populations in the world, is expected to be among the top markets for the gaming industry. One of the main reasons propelling the nation’s market growth rate is the expanding IT infrastructure, which is being fueled by the growing use of smartphones and high-speed internet. Everything from the value of localization to player preferences for in-game revenue Indian players use video games to help them decide which business decisions to make. As per the All-India Gaming Federation, India is the country that downloads the most mobile games (15 billion downloads annually), followed by the US and China.

Brazil, the land of new opportunities

Brazil’s gaming market is very similar to India’s, so Indian game companies are hoping to introduce their products there. This is attributed to the tighter regulations and higher costs associated with acquiring new customers that are driving this initiative. Brazil is the fifth largest gaming market in the world by player count, and it ranks fourth in the world for mobile games with 5 billion downloads. A report claims that it is one of the Latin American markets with the fastest growth rate. Brazil also has a young population with more people having affordable, high-speed internet access.

Additionally, Brazil’s gaming revenue ranks 10th globally, with projections of $446.10 million market revenue in 2027. Gaming companies are excited about Brazil’s increasing average revenue per user (ARPU), in addition to the country’s rapidly increasing smartphone penetration. Brazil is a rich land of opportunity because of all these factors, which is why Indian gaming companies have decided to invest more and make plans to establish a presence in the country in the upcoming years.

Read More: True Gamers Invests $13.5 million in the UAE Gaming Scene

Possibilities for growth

Investigating developing markets like Brazil can help game studios reach a more varied and interested audience through cost-effective customer acquisition. Brazil is a market full of opportunities and excitement. Therefore, Indian gaming firms are now eyeing the Brazilian market. In a few aspects, the typical Brazilian gamer is remarkably similar to the typical Indian gamer. According to Brazil’s Central Intelligence Agency, 16.5% of the country’s population is between the ages of 15 and 24. Both of these markets share a similar user profile and set of preferences. Both have a strong fan base for casual games like HopScotch and hardcore games like Battle Grounds, Free Fire, and Call of Duty.

Tightening gaming laws in India

Large and small gaming companies operating in India have recently had to reevaluate their plans due to new regulations. This holds especially true for those involving the Goods and Services Tax (GST). Gaming companies are required by the new GST regulation to pay a 28% tax on player deposits. Due to the increased operating costs, gaming companies have referred to this as a fatal blow to the industry. In addition, Indian gaming companies are looking at opportunities in foreign markets. This is due to the country’s growing costs associated with acquiring new customers.

Profitability and income

Similar to India, Brazil monetizes games through microtransactions that allow users to unlock exclusive features. About 58% of respondents to a survey claimed to have made in-app purchases. These included power gems in casual games or guns in the Battle Royale game. These purchases can cost anywhere from $5 to hundreds of dollars.

Similarly, Brazilian gamers stated that getting special advantages like early access to particular features was the main reason they bought anything in-game. Brazil is not like India in that it has a higher propensity to spend money on in-app purchases. Data indicates that the ARPU of video games is $2 in India and roughly $27 in Brazil. Because of the higher in-game spending per user in Brazil, this results in a higher ARPU.

Brazil: Cultural ties and government assistance

Brazil Pix is a payment method developed by the Brazilian government. It is becoming more and more popular among gamers as a means of making purchases. Furthermore, it is a major contributor to growth. It’s a peer-to-peer payment system that works similarly to India’s UPI. Over time, gaming companies hope to use games to bridge cultural divides within global gaming communities. This entails bringing Indian games to Brazil and making Brazilian games more well-known among Indian gamers. Doing so will benefit both players and game developers.

Conclusion

The combination of creativity, technology, and cultural quirks promises an exciting future for gamers and the gaming industry in Brazil and India. The gaming companies are set to capitalize on the Brazilian market. This trip will undoubtedly offer countless opportunities for cooperation and bridging disparate communities worldwide.

Read More: Adscholars-iion Enters In A Dynamic Partnership To Transform Gaming In India

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