http://articles.timesofindia.indiatimes.com/2013-07-12/hyderabad/40535716_1_gaming-industry-animation-ailing-industry

There are 20 big and 250-300 smaller players in the animation industry in AP. But 35-40% of studios call it quits every year with quality work being lost to China, Malaysia and Indonesia. Problems faced by the industry * Capital intensive: High production costs, thanks to expensive software and equipment, high VAT and service taxes * Power woes: Unhindered power supply difficult due to state’s power crunch * Lack of talent: Youths don’t see the gaming and animation industry as a viable career option * Govt not GAME for it: The government’s Gaming, Animation, Media and Entertainment (GAME) policy has been in the proposal stage for long