India's Gaming Sector Shifts Focus from Real-Money to Midcore & Casual Games, Unlocking New Opportunities

The Indian gaming sector is experiencing a transformation, driven by the decline of real-money gaming (RMG) and the subsequent rise of midcore and casual gaming, according to Salone Sehgal, founder and managing partner at Lumikai. The Lumikai report, 'Swipe Before Type 2025', reveals that a significant portion of users who previously paid for RMG are now shifting their spending to midcore games. Sehgal noted that approximately 33% of users are making payments in games, with popular midcore titles like Free Fire, BGMI, Clash of Clans, and Coin Master leading the trend. Around 40% of users are paying for midcore games, and 20% for casual titles, demonstrating a deeper engagement beyond RMG.

Impact: This shift is creating a healthier ecosystem by reallocating investor capital and talent. Professionals from RMG platforms are now moving into building interactive media and games, fostering innovation. Lumikai, for instance, has been investing in startups founded by former RMG professionals. The report challenges the assumption that Indian consumers only pay for astrology, Bollywood, or cricket, showing they now spend across a spectrum from Astrology to Gaming (A-to-G). The interactive media sector in India is projected to grow from $12 billion to $30 billion in five years, expanding at a 16-18% CAGR. This indicates significant growth potential for companies focusing on these evolving consumer preferences. Rating: 7/10

Difficult Terms: * **Real-money gaming (RMG)**: Games where players wager actual money and can potentially win more money. * **Midcore games**: Games that offer a blend of complexity, requiring more strategic thinking and time investment than casual games, but are less demanding than hardcore games. * **Casual games**: Simple, easily accessible games designed for short play sessions, often played on mobile devices. * **Interactive media**: Digital content that users can actively engage with, including video games, social media, and streaming platforms. * **Intellectual Property (IP) creation**: The development of original concepts, characters, stories, or game mechanics that are legally protected. * **ARPU (Average Revenue Per User)**: A key performance indicator measuring the average revenue generated by each user over a specific period. * **UPI (Unified Payments Interface)**: India's real-time payment system that allows instant money transfers between bank accounts. * **Microtransactions**: Small, often in-app purchases made by users for virtual goods, features, or enhancements within games or applications. * **CAGR (Compound Annual Growth Rate)**: The mean annual growth rate of an investment over a specified period longer than one year, accounting for compounding.