Hyderabad-based 7Seas Entertainment Limited (formerly 7Seas Technologies), an intellectual property (IP)-based game development company, is looking at infusing investments to the tune of Rs 25 crore in IP creation for different genres and platforms over a period of two years.
“We already have to our credit 400 IP-based games in segments including online, PC and mobile. With our own gaming engines and other advanced technology, which came along with the acquisition of Germany-based Neodelight in 2008, we are now aiming at adding 600 IP games to our existing catalog in the next two years. We are currently weighing various options to raise the requisite funds,” L Maruti Sanker, managing director of 7Seas Entertainment, told Business Standard.
Stating that IP creation in gaming was as important as in any other knowledge sector, with hundreds of man-hours and a whole lot of costs involved, he said depending on the platforms, investment of anywhere between $10,000 (approximately Rs 4.75 lakh) to $5 million (Rs 23.75 crore) was required to come up with on successful IP-based game.
Nasscom projects the Indian gaming industry to grow at a compound annual growth rate (CAGR) of 49 per cent to reach $830 million (Rs 3,942 crore) by 2012, while the domestic animation industry is expected to growth at a CAGR of 22 per cent to touch $1 billion (Rs 4,750 crore) by then.
Bets big on mobile segment
The company, which currently has seven 3D mobile games, is drawing up plans to focus on the mobile gaming segment as well. Though online gaming is the bread and butter of the gaming industry worldwide, mobile gaming is also fast catching up, with both online and mobile segments accounting for 50 per cent of the total gaming demand within India and internationally, he said.
“India has 484.4 million mobile subscribers, and this puts the company in an advantageous position. We have aggressive plans for mobile segment, which will be announced sometime early next year,” Sanker said.
Mulls diversification
Sanker said in keeping with the name-change of the company, 7Seas saw development of IP in the animation segment evolving as a good business opportunity, going forward. According to Nasscom, the Indian animation and gaming industry is expected to continue its growth of 35 per cent a year during 2009-2013.
“We are already witnessing increased demand for ‘original animation products’ for global consumption. Though we do not feel any need to change our business model (IP-based games) at present, we will look how these new segments will evolve and then later take a plunge to reap good dividends,” he said.
According to Sanker, the company was scouting for land in Hyderabad to set up its own campus to support its growing operations and expansion into other verticals in digital entertainment.
“In near future, we are planning to have our own dedicated development centre and a digital studio, for which we will approach the government for allotment of around three acre,” he said, while declining to draw any time line for the proposed plan.
