Why Animation and VFX Professionals are Switching to Gaming Industry?

Since last couple of years, gaming industry has become a safe haven for animation and vfx professionals. Both animation and vfx industry has witnessed a massive exodus of senior and mid-level employees in recent years. The reason being the shrinking of global vfx industry. Gen AI, unethical business practices and cost cutting has been the core reasons behind this anticipated collapse. Since last two years, companies in countries like Quebec, France, US, Canada and even India has been undertaking layoffs in the form of preventive measures to resist the rapidly declining demand for vfx. Anticipating the decline, a huge number of professionals from India’s leading animation and vfx companies started switching to gaming industry. The reasons being:
Fastest growing segment of global AVGC industry:

Presently, gaming industry is the most promising prospect of Indian AVGC segment with a projected growth of 25% in annual revenue. By FY29, gaming sector is projected to cross $9.2 Billion, with a compound annual growth rate (CAGR) of 20%. Thus, gaming industry provides a more promising and greener pasture to aspirants or laid off employees from animation and vfx industry.

Key highlights:

• The gaming market generated $3.8 billion in revenue in FY24.
• In-app purchases were the fastest-growing segment, up 41% Y-o-Y in FY24.
• Real-money gaming (RMG) remains the largest revenue driver, contributing $2.4 billion.
• Mid-core games saw 53% YoY growth, while casual games grew by 10% in in-app purchase revenue.
• The gaming market is expected to exceed $9.2 billion by FY29.

Factors driving growth:

• The growth is driven by a surge in in-app purchases, particularly from mid-core games such as Battlegrounds Mobile India (BGMI), Free Fire Max, Clash of Clans, and EA FC Mobile.
• The improved connectivity opens opportunities for PC and console gamers.
• The metaverse, a virtual environment that promotes interactive interactions, is expected to drive the gaming market revenue.

Job generating engine:

In India, the gaming industry plays a crucial role in job creation. According to the India Gaming Report 2024, the sector is expected to generate 250,000 jobs over the next ten years. The new jobs will cover a wide plethora of roles, including game developers, programmers, testers, artists, animators, UI/UX designers, e-sports event organizers, and marketing professionals. Proposed expansion caters to individuals with skills and educational backgrounds. Efforts are being made to address skill gaps and prepare individuals for these emerging roles through training initiatives. These initiatives involve partnerships between industry leaders, educational institutions, and government entities to develop game development e-sports management courses and related fields. Behemoths like Red Apple Technologies- have long started the process of creating skilled resources by incorporating their training division.

Easy switch

Due to similar job roles and learning curve it is easier to switch into gaming industry than any other industry in India. In last 2 years Red Apple Learning has witnessed 27% growth in enrolment from working professionals, mostly from core animation and vfx industry. Even software and their interface used in gaming industry are very similar to that used in animation and vfx industry.

Adaptability with technical advancements

The crucial driving force behind skyrocketing gaming industry revenue is technical advancements. AR/ VR/ XR or even Mixed Reality of Blockchain- you name it, gaming industry has it. It boasts of a wide and diverse array of technological integration. Even some of the fastest computers in the world were built using game console processors. Thus, unlike any other educational institution imparting professional training, Red Apple Learning renders training in equally diverse fields of designing, programming domains.

India marks the fastest digital penetration with Jio and flagship program like Digital India

Governmental flagship program like Digital India, Atmanirbhar Bharat and also the introduction of Jio mobile by Reliance Mukesh Ambani group has ushered a new era in the job and technological ecosystem of India. Inexpensive calls, faster and affordable internet has propagated smart phone adoption in India big time. Consequently, all these together is like a gold rush for Indian gaming industry. Mobile games surpassed other platforms like PC or console making games a household name for every Indian. This exorbitant growth surpassed sports, music and OTT platforms put together.

Cross industry integration

Gamification facilitated seamless integration of gaming technologies in non-gaming industries like marketing, advertising, retail, health, beauty, research, logistics etc. Introduction of gamification is like opening Pandora’s box filled with unlimited job prospects from diverse skill sets. Unlike Animation and vfx industry- gamification made gaming industry more relevant to other industries like never before. Be it educational app, pharma giants, space research, logistics, marketing, advertising, sports, entertainment or beauty and cosmetics- there is not a single industry in the world which cannot leverage the power of game engines like Unity or Unreal. From training to sales- gamification is a scientifically accepted solution to real world problems of every industry.

Government initiatives

The Indian government has introduced several initiatives to boost Indian gaming industry. These initiatives include 100% FDI in gaming through automatic route. Setting up of National Centre of Excellence (NCoE) for AVGC skill development. Formulation of National AVGC-XR Policy for structured industry growth. A regulatory framework for online gaming ensures a secure environment. Special Economic Zones (SEZs), like Kerala’s KINFRA Film and Video Park, support gaming infrastructure. Events like AVGC Summits further promote industry innovation. These efforts aim to position India as a global gaming hub, fostering job creation and technological advancements.

Self-reliant industry

Unlike animation and vfx which broadly depends on foreign outsourcing.
The gaming industry in India is thriving as a self-reliant sector, unlike animation and VFX, which often depend on outsourced projects and collabs. However, now hundreds of Indian game developers are creating original intellectual properties (IP) for global and domestic markets, mitigating over-reliance on foreign clients. The rise of mobile gaming, digital payments, and government initiatives like the National AVGC-XR Policy has further strengthened the industry. Unlike animation and VFX, which cater mainly to international studios, India’s gaming sector is driven by its own studios, esports tournaments, and indie developers, making it a truly independent and self-sustaining industry.

Diverse vacancies and job openings

The gaming industry is booming, creating exciting career opportunities for both creative minds and tech enthusiasts. Whether you love coding, storytelling, designing visuals, or working with AI, there’s a role for you! Game companies are hiring Game Developers, Level Designers, UI/UX Designers, AI Programmers, 3D Artists, and more. With advancements in VR, AR, and AI, the job market is expanding even further. From indie studios to major gaming giants, demand for skilled professionals is rising. If you’re passionate about gaming, this is the perfect time to turn your passion into a career!

Growing Esports environment

Skilled artists and animators are now shifting towards esports-related opportunities like character design, motion graphics, UI/UX for live streaming platforms, and virtual set creation. As India emerges as a global esports’ hub, the demand for creative professionals in this field is skyrocketing, making it an exciting and lucrative career switch. In addition to that, several vfx companies are switching to virtual production using Unreal game engine.
However, this reminds us that change is the only constant. We are living in a world where technology is replacing each other at an alarming rate. VFX industry being on the verge of collapse has jeopardized thousands of professionals and their families all across the globe. Thousands of students and VFX aspirants are also about to face the biggest challenge in their career. Spending lakhs on training and moving headfast towards a hurricane of uncertainties is indeed frightening.
This is a wake-up call. The creative industry is shifting, and those who don’t see the change and adapt will be left behind.