Video Games
There is  vast untapped potential in India. With the increased penetration of mobile phones and personal computers in small towns and cities, industry experts estimate the gaming market to grow in the near future.
Gaming can be classified into PC gaming, Console gaming, Wireless gaming, Multiplayer gaming and Massive Multiplayer Online Role playing Games (MMORPG).

Mobile games:
According to industry estimates the market for mobile gaming in India is expected to be around  US$336 million by 2009. In India, mobile gaming and console gaming are the most popular forms of games followed by PC gaming and MMORPG.  The penetration of cell phones in India was higher when compared to personal computers; hence more people were likely to get their first gaming experience on a cell phone. Moreover, a large proportion of youth were keen to try out new games. Cellular service providers such as Hutch and Reliance had capitalized on the popularity of mobile gaming in order to attract more subscribers by offering games for download through their websites.

Online gaming
The online gaming sector in India is being driven by the increasing number of Internet users, increase in disposable incomes, and propensity to spend among the youth. The growth of Internet cafes such as Sify i-way and Reliance WebWorld, who have installed online games to attract more consumers, has also contributed to the rise in online gaming in India.

The PC gaming segment in India mainly consists of youth and college students. Console gaming is still at a nascent stage in India. Individual consumers, schools and IT/ITES are the target market for console gaming.

Games can be played using storage devices such as CDs, DVDs or online (with a fast and stable internet connection). Console Gaming – In console gaming, games are played using game consoles.
Apart from a game console, it requires an output device such as a computer monitor or a television and an input device called controller. Some of the popular gaming consoles are Sony’s Play Station and Microsoft’s Xbox.

Wireless Gaming - Wireless gaming refers to the games played using handheld devices such as mobile phones, personal digital assistant (PDAs),2 etc.

Multiplayer Gaming - As the name suggests, this involves playing games with other gamers (usually between five to ten players), sometimes even with players in different parts of the globe...

Gaming software development in India-Potential
India also has great potential to become an attractive destination for outsourcing of gaming development activities. India can capitalize on its strong reputation for outsourcing of IT/ITES services in this regard. But in the outsourcing sector India will have to compete with South Korea and Taiwan whose talent pool is greater than that of India with regard to game development. India needs to establish special training institutes to develop quality professionals. In addition to outsourcing, Indian companies can team up with their foreign counterparts to co-produce games.

Microsoft, Oracle, Sun Microsystems, Intel, and countless technology companies have already set up subsidiaries with thousands of software developers in Bangalore, Hyderabad and other Indian cities. And those companies without Indian subsidiaries are outsourcing software development, call centers, and business processes to Indian companies. India is already a global software powerhouse.

The  game development industry in India is climbing the international learning curve. Thers are many  schools for professional training in India. There are a few indigenous game development and animation studios.  A huge,indian movie/music industry in several Indian cities, can sdubscibe to the development of animation and game industry with creative talent.
India has a large domestic market full of technology savvy youngsters who are beginning to play games, mostly online PC games. While online games have not reached the same fever pitch as in China or Korea, the absolute numbers can quickly grow to staggering proportions in a country that is nearly 1 billion in population. Indian conglomerate Reliance  operates the chain of popular Webworld Internet cafe that offer gaming consoles. As in China and Korea, fast rollout of Internet cafes should propel growth in online games.Many global technology companies from stampeding into India.
In 2006, Indian gaming companies and Indian subsidiaries of foreign gaming companies established the Indian Games Industry and Trade Association (iGITA). iGITA would help Indian gaming companies to secure a strong foothold in the global gaming development market. Indian gaming companies are in the process of developing products that are targeted at both domestic and international markets. Despite the growth and opportunities for development, the Indian gaming industry has to deal with challenges such as scarcity of skilled professionals and high prevalence of piracy.