Indian gaming studios face challenges in monetisation with just $2 revenue per user: Report

Chennai: Despite a massive user base of 511 million players, the Indian market struggles to monetise, according to a report by the industry body Game Developer Association of India (GDAI). India’s gaming revenue is estimated at $1.04 billion in 2025, growing 14.8% year-on-year, but has an annual revenue per user of just $2.04, it said. The industry faces challenges in converting audience scale into commercial value and Indian studios continue to rely heavily on international partnerships for financing, market knowledge, and distribution.Based on a survey, the GameDev Outlook 2026 report said 74% of responses indicate that less than 10% of studio revenue comes from India.It cites low willingness to pay as the second-biggest barrier to market growth, beyond capital and publishing investment. The GDAI report identifies access to capital, publishing expertise, production capabilities, and market access as critical enablers for studios seeking to turn creative ideas into commercially viable games. “Access to overseas players, publishers, investors and clients is therefore not a secondary consideration but is central to commercial viability for a larger share of development stage. Strengthening go-to-market (GTM) capability and making easier, more structured access to publishers and investors is therefore one of the highest priorities for the ecosystem,” it said.The report was released at the India Game Developer Conference (IGDC) in Chennai on Wednesday. It highlights the opportunity for Indian developers to move beyond domestic audience growth and build original intellectual property (IP) with international appeal. It also noted that female participation is approaching half of the player base and non-battle royale titles are gaining share in mobile revenue. The key findings suggest 82.7% of surveyed studios name the launch of new game IP as a top priority.You use AI every day. Now get your AI Quotient. Take the AIQ test.