Chinese Developers Lose $200 Million A Year After India Bans PUBG Mobile And Other Chinese Apps

With the concern of data security and users’ privacy in mind, the Indian government has banned a total of 224 Chinese apps, including the hugely popular PUBG Mobile, UC Browser, and TikTok, among others.

The revenue these apps can generate a year from the Indian market is estimated to be over $200 million, with PUBG Mobile taking credit for half of that.

According to some credible sources in the gaming industry, India contributes less than 5% of the total revenue of PUBG Mobile. While the country isn’t among the biggest contributors of earnings, it has the largest number of players, making it a huge potential market.

In India, the main source of income for the gaming app is in-app purchases. According to Rajan Navani, Managing Director and Vice Chairman of JetSynthesys, brands are pouring money into the digital world in many different ways. And now with PUBG Mobile being banned in India, all of these future revenues are now lost.

As stated in the 2020 Global Games market report of Newzoo, gaming revenues generated from the Indian market is extremely small compared to China, South Korea, the US, or Japan. In 2019, 73% of $2.6 billion in earnings came from in-app purchases.

While Spain, Canada, and Italy have only 30 million to 50 million users, they contribute more than $2.6 billion. India doesn’t even make it to the top 10. The country’s gaming industry generates just around $930 million with in-app purchases accounts for less than 10%. Among the country’s 300 million gamers in India, 85% play mobile games.

When it comes to digital goods, foreign companies don’t need to think twice before adding India to their potential market list. However, the market today is dominated by Chinese and Western developers, meaning a large portion of revenues are being transferred to other countries.

With Chinese apps, including TikTok and PUBG Mobile, being banned and the Aatmanirbhar App Innovation Challenge of PM Narendra Modi, Indian app developers have been presented a once-in-a-lifetime chance to go big and global.

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