SUMMARY
Krafton India CEO Sean Hyunil Sohn highlighted subsidies given to gaming companies for labour costs by countries like the UAE and Canada
The GST Council has recently imposed a 28% tax on the full face value of bets placed on online games
Speaking of the Indian online gaming market, Sohn said that the Indian market is sizeable for top games like BGMI and 'heavily skewed' to top players
Krafton India, the maker of the online game BGMI called for government support to promote the online gaming industry in India.
Speaking at an event on Thursday (August 24), Krafton India CEO Sean Hyunil Sohn highlighted subsidies given to gaming companies for labour costs by countries like the UAE and Canada. Sohn added that ways could be found to promote the industry in the country.
“Data shows actually how governments around the world regard gaming business as one of the future growth drivers for job creation…we all know that India needs more tax revenue to develop the country, but at the same time, I hope that the Indian government can find creative ways to promote the industry,” he said while addressing a CII event on digital gaming.
The GST Council has imposed a 28% tax on the full face value of bets placed on online games, which will be implemented from October 1, with a review of the levy after six months of its implementation.
India’s low-cost internet and high mobile penetration will increase the reach of gaming in India and create opportunities for gaming companies, Sohn said as he highlighted the ‘unique advantage’ Indian gamers have of being mobile-native, unlike their Western counterparts who moved to smartphone gaming from consoles, personal computers and arcade gaming.
“Indian gamers are now at 500 Mn with true gamers in the range of 100 Mn which is not as big as China or South Korea, but given the very inexpensive cost of mobile internet and wide penetration of smartphones, I think the number of gamers will increase very fast and… open up more opportunities for gaming companies like us,” he said.
The Krafton India CEO said that the Indian market is sizeable for top games like BGMI and ‘heavily skewed’ to top players, adding that diversification and the evolution of the gaming industry will result in more players coming up.
Sohn also spoke about the company’s investment in Gurugram-based Nodwin Gaming, saying that “90% of Nodwin’s revenue is coming from mobile esports gaming events.”
He said the gaming industry has grown from being a small industry in the entertainment market to “about 80% of the movie and video game industry combined.”
