From Super Mario to AI, transformative change comes to gaming industry

When Japan’s Nintendo launched the Super Mario video games in 1985, few imagined that the fictional Italian plumber’s popularity would span generations and assist the rise of a multi-billion dollar gaming industry. 

More than 40 years later, the appeal of console-based video games continues in an era of artificial intelligence (AI) and the internet. AI is changing the way consumers use console games by making them interactive and immersive. Thanks to smart algorithms, games have lifelike characters, changing environments, and challenges adjusted to users’ skills. Such features make console games engaging and challenging, while making players more emotionally connected. 

The global gaming console market was valued at $42.0 billion in 2024 and is projected to grow and be worth $61.2 billion by 2033, according to a report by research firm IMARC. 

“Previously, the market focused on hardware specs, game library, and graphics capabilities, with the choice of consumer based mainly on console performance and exclusive titles,” said the IMARC report. “Contemporary consoles are no longer passive devices limited to gaming; they are evolving as dynamic systems that can learn from the players’ activities, modify in-game situations in real-time, and deliver individualised experiences specific to every user.” 

Gaming consoles powered by AI algorithms can in real-time assess a player’s behaviour, preferences, and skills. The algorithms enable devices to dynamically adjust game-play by modifying difficulty, customising challenges, and even tailoring storylines to suit individuals. 

The biggest gift the gaming received was Nvidia, an American technology company that designs and manufactures graphics processing units (GPUs). Its GPUs were originally made in the 1990s for the console gaming industry and multimedia markets to allow heavy graphic usage and real-time movement of characters on screens. Nvidia’s first GPU (GeForce 256) in 1999 revolutionised computer graphics and set the foundation for modern gaming visuals. Its GeForce series remains the most widely used graphics platform for computer games, powering high-performance visuals and realistic rendering. Nvidia’s GeForce NOW is a Cloud-based service that lets users stream high-end games to almost any device. 

The Indian gaming industry is creating its own space by using the latest technologies. Several companies are delving into Indian mythology to build their own characters within games. Animation is the core of the video gaming business and important to the film industry as well. Aided by the rise of videos based on generative AI, even advertising is leaning on animation. 

The Indian animation market was worth $1.89 billion in FY24 and is projected to grow to $24.48 billion by FY32, said a report by Markets & Data research. “The growing emphasis on localisation is attracting international collaboration, with global studios partnering with domestic animators to introduce content that blends international appeal with local flavours. Therefore, companies in the market are establishing high-tech studios across India to provide world-class visual effects and animation services to its international clientele,” it said. 

India has the second-largest anime fan base globally and is projected to contribute 60 per cent to the worldwide growth in anime interest in the coming years, according to a report by FICCI.  

The government is actively supporting the sector. Its key initiatives include a National AVGC-XR Mission to establish India as a global hub for animation, visual effects, gaming, comics, and extended reality. The Indian Institute of Creative Technology is being established in Mumbai to serve as a hub for education, research and development, and innovation in AVGC-XR.  Modelled after the prestigious Indian Institutes of Technology and Indian Institutes of Management, the centre aims to create a world-class talent pool. 

As games fans celebrate 40 years of Mario, creators will be keen create a similar gaming icon in India.