Krafton India, the developer behind the popular online game BGMI, has raised its voice in favor of government support to propel the online gaming industry in the country. The CEO of Krafton India, Sean Hyunil Sohn, emphasized the importance of subsidies similar to those provided by countries like the UAE and Canada to gaming companies for labor costs. Sohn’s call for support was made during an event on Thursday, August 24.
Global Perspective on Gaming Business
Sohn spoke at a CII event about digital gaming. He emphasized gaming’s global recognition for creating future jobs. He pointed out data showing governments worldwide see gaming as vital for job growth. Sohn hoped to find innovative ways to boost India’s gaming industry. He acknowledged India’s requirement for more tax revenue for development.
GST Implications on Online Gaming
Sohn discussed the recent decision by the GST Council to impose a 28% tax on the entire face value of bets placed on online games. This tax is set to take effect from October 1, with a review scheduled after six months of implementation. Sohn’s remarks underscored the potential impact of this tax on the gaming industry and its players.
Indian Gaming Landscape and Unique Opportunities
Highlighting India’s distinct advantages, Sohn pointed out the country’s low-cost internet and widespread mobile penetration. He noted that these factors poised to expand the reach of gaming and create opportunities for gaming companies. Sohn highlighted the unique advantage Indian gamers possess—being mobile-native, unlike their Western counterparts who transitioned from other gaming platforms.
Krafton Investment and Industry Growth
Sohn shed light on Krafton’s investment in Nodwin Gaming, based in Gurugram. He revealed that a substantial portion of Nodwin’s revenue, around 90%, comes from mobile esports gaming events. Sohn also discussed the remarkable growth trajectory of the gaming industry, describing how it has evolved from a small segment within the entertainment market to a force that now rivals approximately 80% of the combined movie and video game industry.
Krafton India’s CEO
Krafton India’s CEO, Sean Hyunil Sohn, emphasizes government support for boosting India’s online gaming industry. He highlights the industry’s growth potential and job creation ability. Sohn discusses global gaming trends, taxation effects, and advantages of India’s gaming landscape. His insights offer a complete picture of industry challenges and opportunities. The gaming sector’s rise underscores the need for inventive strategies to foster its growth. This goal is pivotal for both industry leaders and government stakeholders.
