smartphones are definitely a luxury!
not when majority are micromax, also cell phones is an essentially nowadays, so indian market had to accept it, and as most of us go for bang for buck these smart phones picked up, not to mentioned all the marketing and status quo stuff.
whereas gaming is not an essentially, as in right now you need to own a cell phone and if you are getting it you better buy a smartphone, but consoles are nowhere there.
Also lack of gamer culture, gaming was looked down upon by most until recently, things are changing though slowly.
I think both points go hand in hand like chicken egg situation, lack of gaming culture leads to less marketing, and lack of marketing leads to less gaming culture here. this is something that's standard with indian system, unless someone takes the risk and initiative no one will venture into it.