Indian gamers are spending more on shooters and strategy titles as market matures: Report

India’s mobile gaming market is becoming bigger and more valuable, with players gradually moving beyond casual, ad-supported games towards competitive and mid-core titles that generate higher in-app purchases, according to MIXI Global Investments’ India’s State of Play report.

The report estimates India’s non-real-money gaming market generated $1.1 billion in 2025, excluding real-money gaming (RMG), and expects the market to reach $1.5 billion in 2026 before growing to $2.4 billion by 2029. According to the report, improving smartphone penetration, expanding digital payment infrastructure, rising disposable incomes and increasing spending per user are expected to support the next phase of growth.

RMG changes reshape the gaming landscape

The report says the regulation of India’s real-money gaming sector in 2025 has had ripple effects across the broader gaming industry.

According to the report, the $3.7 billion RMG economy has begun redirecting capital, talent and consumer attention towards non-RMG gaming. It says this has triggered strategic pivots by gaming companies and created fresh opportunities for publishers developing free-to-play and mid-core titles.

“With minimal regulatory concerns and strong government incentives, non-RMG gaming is set for more sustainable growth,” the report says, adding that fresh capital and an expanding pool of skilled talent are expected to unlock significant opportunities for the sector.

A market built on scale, not spending

India is now home to 600 million active gamers, making it one of the world’s largest gaming audiences. The player base expanded 9% year-on-year in 2025, while annual mobile game downloads reached 7.95 billion, the highest in Asia.

However, despite leading the region in downloads and time spent gaming, India remains relatively under-monetised. The report notes that the country ranks only sixth in Asia in in-app purchase revenue, generating around $800 million, reflecting the country’s price-sensitive consumer base. Indian gamers continue to favour free-to-play titles, with advertising remaining a key monetisation channel.

“The central question around India’s market is when it will reach its tipping point and become a highly monetisable market for global publishers,” the report says, adding that improved localisation, tailored live operations and changing consumer behaviour are beginning to unlock that opportunity.

Players are beginning to spend more

The report says India is showing “promising maturation signals”, with mobile gaming revenue growing at a 17.1% compound annual growth rate over the past five years. During the same period, in-app purchase revenue has more than doubled as players gradually transitioned from casual games towards mid-core experiences.

According to the report, rising GDP per capita, expanding digital payment infrastructure and an ageing player base are encouraging greater spending within games, even as free-to-play experiences continue to dominate the market.

Advertising nevertheless remains an important revenue source. The report estimates in-game advertising generated about $300 million in 2025, accounting for more than one-third of India’s mobile gaming revenue. It notes that limited discretionary income and cost sensitivity continue to make ad-supported gaming the preferred model for a large section of Indian users.

Shooter games dominate consumer spending

Gaming preferences vary depending on the metric being measured. Simulation and arcade games account for the highest downloads, while shooter games generate the largest share of in-app purchase revenue. The report says the genre overwhelmingly dominates consumer spending despite not leading in installs.

According to the report, Free Fire MAX and Battlegrounds Mobile India (BGMI) together account for nearly half of India’s player base and contribute 94% of all shooter-game revenue, making competitive multiplayer games the country’s biggest revenue drivers. It also notes that Call of Duty: Mobile is steadily gaining relevance, signalling growing demand for higher-end shooter experiences among Indian gamers.

Battle royale continues to remain India’s highest-grossing gaming subgenre, although growth has moderated. At the same time, sniper games have emerged as one of the faster-growing categories, with the report attributing their popularity to shorter gameplay sessions that appeal to Indian users.

Strategy games emerge as the next growth story

Beyond shooters, strategy games are emerging as one of India’s fastest-growing gaming categories. According to the report, 4X strategy games recorded 77% year-on-year revenue growth, while MOBA revenue increased 234% and card battlers grew 92%, suggesting Indian gamers are increasingly spending on games centred around progression, competition and long-term engagement.

The report attributes part of this trend to behavioural shifts following changes in the real-money gaming industry. “An early look at market dynamics post-RMG ban reveals massive rising interest in the Strategy genre,” it says, adding that user migration is also benefiting simulation games as players redirect their attention towards traditional mobile gaming experiences.

Localisation is becoming a competitive advantage

Titles such as Ludo King and Cricket League continue to outperform several global franchises in download volumes because of their cultural relevance, while publishers of games such as Free Fire MAX and BGMI have invested heavily in India-specific tournaments, regional marketing campaigns, influencer partnerships and live events.

“Culturally rooted experiences and localized strategies are a central success factor for publishers,” the report says. It also points to locally developed games such as ScarFall 2.0 as examples of improving production quality aimed specifically at Indian audiences. The report also highlights Roblox’s significant monthly active user growth in 2025, saying it is paving the way for a larger ecosystem of Indian user-generated content creators and studios.

Looking ahead

The report projects the country’s mobile gaming market to reach $2.4 billion by 2029, driven by rising average revenue per user, continued smartphone adoption, expanding digital payment infrastructure and higher spending from players shifting towards mid-core games. Looking beyond mobile gaming, the report also sees opportunities in PC gaming, locally developed intellectual property, Web3 gaming, gamified consumer apps and India’s rapidly growing microdrama ecosystem.