Discuss the opportunities and challenges in Online Gaming and emerging technologies, in India.
- In Gaming industry, Indian regulation has historically been preventive, rather than facilitative.
- However, recently the government has altered this passive approach.
- Government has identified animation, visual effects, gaming, and comics (AVGC) as a focus area, and quickly followed it up by setting up a task force for it.
Opportunities in Online Gaming and emerging technologies
- Online gaming presents India with a rare opportunity to be a global leader in these emerging technologies.
- Gaming is a gateway to frontier technologies like Augmented reality (AR), Virtual reality (VR), Web3, digital assets, and more.
- Games like Iluvium, Three Kingdoms, and StarAtlas are leveraging smart-chain technology to incentivize users across Asia.
- The massive multiplayer game Justice Online is launching a version that integrates ChatGPT.
- Artificial intelligence is used regularly for pathfinding and non-player character conversations.
Example
- Vietnam-based Axie Infinity is pioneering the play-to-earn segment, scaling non-fungible tokens (NFTs) to a level unseen before.
Challenges in the gaming industry
Social Issue
- The gaming industry is seen as a sin sector.
- In Japan, GanGan Comics’ WataMote received a lot of criticism for its treatment of social anxiety.
- Unless the industry invests in educating stakeholders, it could come to be viewed in the same light as alcohol, cigarettes, and gambling.
Conflicting State Laws
- Each game might need to seek clearances at both central and state levels.
- In the gaming industry, which requires rapid innovation, a patchwork of compliance requirements may prove operationally cumbersome.
- States like Tamil Nadu, Kerala, and Telangana have sought to ban online gaming under state laws.
Lack of coordination in Government Policies
- The finance ministry is mulling over taxing online gaming at 28% of pot value, which would discourage this industry.
- Sports ministry officially recognizes e-sports, hopefully for its potential to generate medals in global sports events.
- Ministry of Electronics and Information Technology has been encouraging the industry, allowing for self-regulation.
- Both the Government and Industry need to work together on reconciling all these positions to unlock the industry’s enterprise-value potential.
Lawsuits and Arbitration
- India is still pushing deliberations on the future (emerging tech) through systems of the past (archaic legal systems).
- The ongoing case between Dream11 and Mobile Premier League is likely to set a precedent for rights associated with NFTs and their permissible use.
Tackling the challenges
- Engage in ‘co-opetition’, come up with a common minimum plan, and then approach regulators as a united front.
- Support game de-addiction programs and educate users on risks and responsibilities.
- Highlight gaming as a medal winner, a tool for education, a contributor to the exchequer, a provider of high-value employment, and more.
- Create innovative models to monetize efforts beyond real money.
- Invest in domestic R&D and patents to accelerate the development of emerging technologies in India.
The government’s efforts in facilitating the gaming industry are as important as spreading awareness and education regarding the gaming sector and its opportunities by the industry itself. A coordinative approach between both will solve the existing challenges and it will open a door for India to lead the world in the gaming and emerging technologies.
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