The Game Developer Association of India (GDAI) has released its annual report, “GameDev Outlook 2026,” at the India Game Developer Conference (IGDC) in Chennai. Developed in collaboration with PhonePe Appstore and research partner The Dialogue, the report analyzes the structural challenges confronting Indian game developers and outlines priorities for establishing globally competitive studios.

The report, based on a survey of 104 industry professionals and 13 academic institutions, identifies access to capital, publishing expertise, production capabilities, and market access as crucial elements for studios aiming to transform creative concepts into commercially successful games.

GDAI Market Overview and Monetization Gaps

India’s video-game market generated an estimated US$1.04 billion in revenue in 2025, marking a 14.8% year-on-year growth and reaching a player base of 511 million. Despite this expansion, the annual revenue per user stood at just US$2.04. This figure underscores a significant gap between the country’s growing player base and its potential for monetization.

The “GameDev Outlook 2026” also highlights an opportunity for Indian developers to move beyond domestic audience growth and concentrate on developing original intellectual property (IP) with international appeal. The evolving market, characterized by female participation nearing half of the player base and non-battle royale titles gaining share in mobile revenue, suggests diverse opportunities across various genres, platforms, and audience segments.

Key Findings and Industry Priorities

A significant 82.7% of surveyed studios prioritize launching new game IP, considerably outpacing entering international markets (49.0%) and securing capital or publishing deals (38.5%). Concurrently, 75% of respondents identified capital or publishing investment as a barrier to growth, indicating a demand for more robust funding and publishing pathways. The report also notes the geographic spread of India’s game-development talent, with 41.3% of industry submissions originating from Tier 2 and Tier 3 cities.

Sridhar Muppidi, GDAI Chairperson, commented, “India’s biggest advantage in gaming is its young and diverse creative base with strong original-IP ambitions. With the player base reaching well beyond the metros, young developers now need capital at every stage and education built around real team projects. The Union Budget’s talent development allocation and GDAI Vision 2035 are vital for Indian developers and artists to build games for the world.”

Industry Collaboration and Government Support

The report, supported by co-sponsors including Gameberry Labs and NODWIN Gaming, emphasizes the necessity for collaboration among developers, investors, publishers, and educational bodies to strengthen the commercial foundations of the ecosystem. This call for collaboration aligns with the Union Budget 2026-27 proposal, which allocates INR 250 crore for Content Creator Labs in 15,000 secondary schools and 500 colleges. This initiative is viewed as a crucial step to assist more studios in progressing from prototypes to market-ready releases and establishing sustainable businesses.

User Acquisition and Distribution

The report also examines the cross-category affinities of gamers, offering insights to refine user acquisition strategies. PhonePe Appstore’s analysis, included in the report, reveals that 40% of its users navigate in a regional language. This analysis further demonstrates that gamers are significant consumers of non-gaming applications: Midcore gamers frequently engage in digital multi-homing across categories like Finance, Travel, and Business, while Hardcore gamers are prominent in Media & Audio consumption, and Casual gamers rely heavily on Core Utilities and Shopping.

Priya Narasimhan, Chief Business Officer at PhonePe Appstore (https://www.phonepeappstore.com/), stated that user acquisition remains a significant hurdle for Indian developers, making the “GameDev Outlook 2026” report’s insights into user behavior crucial for targeted development. Narasimhan added that the PhonePe Appstore aims to address distribution challenges by offering a platform for developers to reach a broad audience.

The “GameDev Outlook 2026” concludes by advocating for coordinated action across financing, talent development, production, publishing, and market access to cultivate a stronger pipeline of globally competitive game studios in India. For further insights into emerging digital entertainment trends and industry developments https://technosports.co.in/), stay tuned to TechnoSports.