PC/Xbox Games development seems like such a perfect candidate for being done out of India.
Why ?
Because
a. its extremely labour intensive, requiring not just programmers but 3D artists and their ilk.
b. its a make or break thing, so u want to minimize the investment required upfront, since u dont know the chances of success
c. 3d animation, a related industry is picking up in india - getting good artists at reasonably cheap cost, should not be a problem
d. there are lots of people in india who want to get into the gaming industry, but there arent many companies into it
Found an interesting article,on what a game development startup should NOT do and its sequel.
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