Return of Free Fire ignites Indian gaming industry’s hopes

Casual gamers and their more devoted kin had reason to celebrate as Garena reintroduced its popular game Free Fire to India last week after it had been banned in the country last year. The game was the biggest competitor to Battlegrounds Mobile India (BGMI), the most popular battle royale game in India, which itself was the retooled-for-India version of PUBG.

In terms of numbers, Free Fire was the most downloaded mobile game globally in January 2022, with a whopping 24 million downloads right before it was banned in India. Now, in June 2023, it’s still on top as the most downloaded mobile game worldwide, with nearly 19 million downloads. India played a big part in this, accounting for 27.9% of all downloads during this time. 

Piyush Kumar, Founder and CEO, Rooter says that Free Fire making a comeback and the ban on BGMI getting lifted are blessings for the industry, considering they are two of the biggest and most popular games in the country today. "We are now perhaps close to reaching the peak engagement numbers of July 2020 when both games had created a massive fan following. We believe, once Free Fire and BGMI are in full steam, they will have the potential to collectively hit 200 million monthly active users over the next 12 to 18 months. That’s nearly one-third the size of an industry that boasts ~600 million gamers."

Firasat Durrani, Co-Founder and VP, Operations, Loco observes, “Free Fire's absence was keenly felt by a large community of dedicated players and its return marks a new chapter in Indian gaming. It was in the top two categories, often the top category on Loco (from a watch-hour and views POV), which is a good proxy for the popularity of the game. The return of the game aligns with Loco's broader vision to serve as a comprehensive platform for a variety of gaming experiences, contributing positively to the industry's growth in India.”

Rohit Agarwal, Founder and Director, Alpha Zegus, says Free Fire is (was) one of the Top Three gaming titles in India, in terms of popularity and audience base. “Its return has been as anticipated as the return of BGMI was, and I’m estimating an instant recovery of about 70% of the original audience base. This means that tournaments, sponsorships, etc., will take no time to come back to pre-ban level.”

This comes at a crucial time for Indian gaming and esports, after the recent levying of 28% GST on RMG platforms and many fantasy sports cast a pall over one of the country’s brightest sunlight sectors. Mitesh Gangar, Co-Founder and Director, PlayerzPot, speaking to exchange4media about the newly proposed tax said, “The excessive tax burden places a severe strain on cash flow, making it difficult for small businesses and companies to allocate adequate funds for advertising and marketing efforts. Consequently, their ability to effectively reach and engage with their target audience becomes highly limited.”

“With advertising budgets reduced by 50% compared to current levels, gaming companies face a significant decline in their capacity to connect with gamers and successfully promote new games.  This tax levy will add uncertainty and additional challenges to their advertising strategies,” said Gangar.

This is what makes games like Free Fire and BGMI so crucial to the gaming ecosystem and why their reintroduction to India is a shot in the arm for the country's gaming media ecosystem. 

"Already, since BGMI’s unban in May, we’ve organized about 7 esports tournaments with partners like NODWIN Gaming, Upthrust Esports, and Revenant Esports, including the BGMI Master Series. In this span, we’ve worked with close to 37 endemic and non-endemic brand sponsors and advertisers," says Kumar, adding that once Free Fire-based esports tournaments start getting organized, the brand partnerships are only expected to soar

“Ad spends are definitely expected to increase, since the reach and engagement numbers of FFI are incredibly high. Also, it’s a game that appeals greatly to Tier 2 and Tier 3 audiences, giving advertisers a great tool to tap into these markets. Lastly, the game also has a highly GenZ / Gen Alpha audience compared to the other popular titles,” adds Rohit Agarwal.

Animesh Agarwal, Founder and CEO of 8Bit Creatives, and Co-Founder of S8UL, asserts, “It's not just about competition; Free Fire's comeback is a boost for content creators too. It'll offer them exciting content opportunities to grow their fanbase in the gaming world. Furthermore, with all the renewed interest in the game, we can expect both endemic and non-endemic brands to get involved further solidifying Free Fire's place in the gaming ecosystem.”

Lokesh Suji, Director, Esports Federation of India & Vice President of the Asian Esports Federation (AESF), lauded the return of the game, while noting, "While embracing this wave of progress, it is also crucial that the Indian government exercises vigilance over the aspect of security and data privacy. Safeguarding the interests of players and enthusiasts alike is a collective responsibility that ensures the sustainability and credibility of our esports journey."

Durrani adds that the re-launch of Free Fire brings an integrated set of security solutions related to the gaming ecosystem. “We strongly believe that incorporating security features such as a verification system to enable parental supervision, gameplay limitations, and ‘take a break’ reminders, will be successful in encouraging safe and healthy gameplay among the players.”

According to experts, the return of Free Fire in the Indian gaming market undoubtedly presents an array of enticing advertising and branding opportunities for all stakeholders involved. “Free Fire India offers a compelling and timely opportunity for players, creators, and brands to tap into the game's prominent status and connect with an ever-expanding and passionate gaming community. The outlook for advertising and branding within the Indian gaming landscape has never been more promising,” says Animesh Agarwal.