The console market in India is set to grow to USD 125.4 million (EUR 93.6m) by 2010, according to research by iSupppli.
The figure represents a 75 per cent growth for the region which was worth USD 13.3 million (EUR 9.9m) in 2006.
"The console gaming segment is not very sizeable in India," noted Ashish Thakre, associate analyst at iSuppli.
"However, future growth expectations and consumerism are prompting companies to establish themselves in India."
Sony launched the PlayStation 3 in the Indian market in April and expects to sell 10,000 units by year end despite a price tag of USD 980 (EUR 732 / GBP 491). According to iSuppli the console has so far sold 1,200 units.
Microsoft's Xbox 360 has been available in the market since September 2006 and retails for around USD 600 (EUR 448 / GBP 300).
The company has specifically targeted the market, releasing titles such as Yuvraj Singh International Cricket to appeal to local tastes.