The Unstoppable Rise of Hypercasual Gaming in India
The Unstoppable Rise of Hypercasual Gaming in India
In the ever-evolving landscape of digital entertainment, the hypercasual gaming genre has emerged as a true game-changer. Defined by its simplicity, intuitiveness, and universal appeal, it has risen exponentially since its inception with the launch of Flappy Bird in 2013. This genre, which accounted for over 25% of all game downloads globally and witnessed a surge of nearly 20% in Q2 2022, has found fertile ground in India's dynamic digital market.
The genesis of the hypercasual gaming industry traces back to 2013, with the publication of Flappy Bird, a game known for its short levels and simple gameplay. These characteristics set the stage for the rise of the hypercasual genre. The years 2013-2016 marked a significant shift in the industry, as hypercasual games leveraged cross-promotion campaigns and organic installs for expansion. By 2017, hypercasual games started to follow the growth strategies of other genres, using paid user acquisition to scale. Despite their lower Lifetime Value (LTV) compared to casual or mid-core games, they demonstrated profitability at scale, attracting an increasing number of publishers to the genre.
The evolution of the hypercasual genre in India has not been linear, with the emergence of sub-genres offering further avenues for growth. For instance, 2019 marked the rise of ASMR hypercasual games, while 2021 brought forward TikTok-inspired concepts. With time, the content depth in hypercasual games has expanded, with more complex levels, larger content volumes, and new progression methods. Moreover, the introduction of metagame features, like awarding skins for progression rather than default monetization, added an extra layer of depth.
As the hypercasual genre evolved, so did the processes of developing, monetizing, and marketing these games. Faster development times, better-quality execution, and more accurate marketability prediction tools are now hallmarks of the genre. Alongside these developments, monetization methods have deepened, opening up more opportunities for in-app purchases and rewarding video monetization.
Presently, the global hypercasual market garners $2-2.5 billion in revenue and records roughly 17 billion installs annually. Remarkably, the hypercasual genre now accounts for over 25% of all game downloads, showing a significant uptick of almost 20% in Q2 2022. This remarkable growth fuels the broader mobile market, underlining the symbiotic relationship between hypercasual and non-hypercasual gaming genres.
Looking ahead, the future of the hypercasual gaming industry in India revolves around two main themes: the persistent demand for short-form entertainment and the emergence of hybrid-casual games. The popularity of short-form content platforms like TikTok, Instagram Reels, and YouTube Shorts highlights the growing demand for bite-sized entertainment, which hypercasual games are perfectly positioned to provide. I also expect ads based monetisation to not be an attractive monetisation mechanic in the future given Android and iOS’ privacy first changes a general user sentiment against interruptive ads. Bundled hyper/hybrid casual gaming experiences, along with social/multiplayer experiences, some of which come behind a paywall could provide alternative monetisation channels.
However, as costs rise and the need for higher LTV becomes imperative, the hybrid-casual genre is set to emerge alongside hypercasual games. This new genre combines the core features of traditional hypercasual games—quick prototyping, engaging gameplay, high marketability, and short sessions—with deeper gameplay, a greater reliance on in-app purchases, and more advanced LiveOps. The hybrid monetization strategy optimizes ad revenue for quick returns and in-game purchases for enhanced retention and LTV.
Just like there’s a TikTok for short video, I eventually also expect to see a TikTok for hyper casual games that offers a deep, personalized catalog of diverse, “pick up and play” games which are also social experiences. Another area of innovation that I expect to see more of is brand engagement driven through hyper/hybrid casual games.
With advancements in HTML5 and WebGL, I also expect hypercasual and hybridcasual games to be instant - no app download required.
All these shifts combined mean that hypercasual games are what will make a billion smartphone users in India, gamers.
Created using Midjourney.
Great article! Flappy Bird was a game which addressed a major requirement, killing the time during travel in trains and bus in Vietnam. The key feature of the game was it can be played one handed while holding to the rails of a bus or a train. India surely have this use case to address with similar games which are captivating enough.
The short-term and long-term roads to monetization makes sense. A couple of refinements to think of:
1. I don't see ads being any meaningful contributor for any "new" gaming company simply because in an era of falling CPMs (especially in India with increased supply of eyeballs), ads can't possibly stack up anything meaningful even in the short-term
2. The role of ads ironically however would be to act as irritants (read nudges) for the player to upgrade to an ad-free experience.