Microsoft and Sony Computer Entertainment India are rushing to write price-reduction code to expand their spoils in India’s market for gaming software.
Bring down prices of games, consoles to boost penetration
MUMBAI: Microsoft and Sony Computer Entertainment India are rushing to write price-reduction code to expand their spoils in India’s market for gaming software.
This is even as they bring down the prices of the hardware - or the consoles — to increase penetration.
The gaming market in India is growing seven-fold on the hardware (console) side and 10-fold on the software (games) side, according to Atindriya Bose, country manager, Sony Computer Entertainment India.
Sony sells about 8,000 consoles a month in India, including the smaller, portable versions. India has an estimated 300,000 PS2 consoles and 90,000 portable bases.
When PS3 was officially launched in April this year, it cost Rs 40,000. The price has came down to Rs 30,000 for a console with a 60GB hard-disk drive.
To cut costs, Sony started replicating the gaming software for its own titles for PS2 at its Sony Digital Audio Disc Corp plant in the Vikhroli suburb of Mumbai from January 2007, although it wasn’t until recently that full-fledged operations began. The consumer electronics giant is not just spinning out its own DVDs but also of other gaming software publishers such as US-based Electronic Arts. Producing locally helps Sony avoid import duties as high as 35% for DVDs.
The result? Games that used to cost Rs 1,500-2,000 now come for half to one-third that price. Bose said Sony will gradually increase the number of titles it replicates in India for PS3.
The Mumbai plant has enough replicating capacity to meet India’s demand for gaming software, he said.
While such a method for price reduction is possible for PS2, for XBox and PS3-compatible games, such local replication of software is not yet possible because of the sophisticated technology needed. Still, Microsoft has been able to reduce prices of XBox games from Rs 2,500-3,000 to price points such as Rs 999 and Rs 1,349. “This is because of a revision of prices, the rupee appreciation as well as bigger discounts that we are offering to make the content accessible at better value terms” said Mohit Anand, head, media entertainment, Microsoft India.
Sony has now introduced a Rs25,000 PS3 with 40GB hard disk which will be in the same price league as Microsoft’s XBox Pro.
Also, a Slim and Light PSP (PlayStation Portable) has been launched in normal and speciality packs. Six new games, 3 each for PS3 and PSP will be introduced by Sony this month-end or early December. Bundling offers also is in play. Microsoft offers 4 games worth Rs 10,000 free with the Pro.
“As the market matures, various price points will emerge. We will also be looking at providing bundle offers for Sony Bravia TV and PS3 together,” said Bose.
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