Japan, The Gaming Giant: Can It Stay In The Game? | Japan's Comeback Game | CNA Documentary - video-games-arcade.com

Japan, The Gaming Giant: Can It Stay In The Game? | Japan’s Comeback Game | CNA Documentary

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25 years ago, Japan controlled 50% of the global video game market. Today, it is under 10%. What is the cause of this decline? And what is Japan’s future in this $135 billion US dollar industry?

Throughout the 80’s and 90’s Japan was a dominant force in video games, with mega hits in the gaming arcades such as Pac Man, and then they dominated the console market with Nintendo and Sega who brought the world games such as Mario and Sonic. By 1995, Japan controlled 80% of the global console market.

However, close regional competiton started to emerge. And they soon began to have a massive impact on the way the world played video games. Communal game playing in Korea’s so called ‘PC Bangs’ in the late 90’s also gave birth to eSports, and in China, mobile gaming exploded over the last ten years.

But Japan is not taking things lying down. With new developments in the past few years like Nintendo Switch and gaming favourites like Animal Crossing, Japan looks set to make a comeback.

#CNAInsider #JapansComebackGameCNA #Japan #Gaming #VideoGame #Nintendo

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102 Comments

  1. The Chinese game model is crafty. Like: I bought a colour printer with color and black and white cartridges for R800. BUT a Black and White replacement cartridge costs R1200. And a color cartridge costs R1500. The printer is essentially "free". But PRINTING is where the money is.

  2. Japan is still king when it comes to the console market and for people who see games as art. Even if they don't dominate everything.

    Esports is "sports" . And social online games is also a different thing.

    Its like comparing movies with football and game shows, which is technically all TV entertainment but nobody is saying Hollywood is lagging behind since its not doing sports events etc and dominating everything people watch.

    I don't think the Japanese gaming market is in trouble since its not shrinking, the gaming world has just grown in other areas also with different types of interactive entertainment(games).

  3. When japan making games as for now, i see a decline a little by little over last 5 years …. and i see China is rising to make at least "a good games" so far. Japan developer is a bit of scared and careful when want to releasing new IP game ; its because japan economy is stagnant and making games is not cheap anymore …

  4. Japan ain’t goin anywhere in terms of gaming.

    1. Nintendo now has a Disney effect with franchises like Mario, Zelda, Pokémon, Animal Crossing, Metroid, Kirby, Splatoon, Smash etc. The ability of that sphere of franchises to generate huge fanbases and growth, as well as the switch’s setup that steers away from mobile while still having a modern appeal, has made Nintendo and the console grow so much recently, and it may end up as the best selling console of all time.

    2. On the other side of the fence with gamers who play more mature stuff, Sega, Capcom, Square, and Bandai Namco have put out super successful games, maybe not dominant the way Nintendo is with the “colorful” gaming market, but still pretty big

    3. Lastly, Japan doesn’t exhaust as much influence on the PlayStation brand as they used to, but at the end of the day, Sony is a Japanese company and PlayStation started in Japan. Thus, they still do have quite some input on the brand, which, mind you, is one of the biggest things ever as well just like Nintendo.

  5. "a zen game where nothing bad ever happens"

    continues to cry about losing all my money to turnip prices

  6. The tren of video games now is digital video games. N japan lack of digital technology in many sectors.

  7. Why would in this age gamedevs bother with pc or console when they can be millionaires making mobile games?

  8. “Japan is sticking to what it knew, in its decrement.” Sounds like most of Japanese industries. Japan needs to be less rigid in its authority structures and let the young innovators and creatives have a say in what gets done.

  9. PlayStation and Nintendo still dominate. But i hope Japan enter the Mobile and PC games

  10. XBoX whats that? I cant remember any xbox game that became popular around the world

  11. Another issue with them is their restrictions on the consoles. Nintendo has 1 game that I know of that has made it to the PC. Some games that are on PS4 aren't on Xbox and vice versus. I know they want to sell the consoles, but frankly they are getting too expensive. They have to remember their clientele. While many many many adults play, just as many kids do to.

  12. Japanese RPGs are BORING. When you've played 1 JRPG, you've played them all. Other than a slightly different story, there is never any variation and its never an open world for you to explore. No wonder no one plays JRPGs nowadays. Take Pokemon for example. After so many years, its still not gone open world. That's how rigid Japanese games are.

  13. That easy because Japan make inferior games.
    Even China and South Korea are better.

    The only quality Japanese games are their kids games and RPG's (the west make better RPG's)

    Japan doesn't make good quality linear story games (last of us)
    They don't make good FPS
    They don't make Good racing games.

    The wets literally makes everything better then Japan except for arcadey kids games (shoutout Nintendo)

  14. I didn't think about this before but to me 90% of games are Japanese. I'm not into mobile games and on PC very few games I played are from other countries (like NFS or Forza horizon). Dragon Quest builders was the last video game that caught my attention and even today that I don't play much videogames anymore Nintendo is still the first thing that comes to mind when I think about having a good time playing some games ( Mario karts, Luigi mansion, Mario 3d land (you name it)). I also never felt for shooting games and I still can't wait for that hype to drop and then leave more attention to other genres.

  15. I guess they couldnt just go interview Nintendo EPD or Sony Japan studios. Oh wait, japan studio is no more.

  16. I sincerely hope Japan could be a serious challenger in the PC gaming market because most PC games are too Eurocentric, we need some Asian representation.

  17. It is making its comeback, it is going to be as certain, the way SMEs are certain in many businesses, respective brands, names, and principles as well as features designed for customers/clients, fully protected,secured, as well as defined and disciplined amongst its various clients. SMEs respectively. Oishi, tamagochi.

  18. Wow, what a dynamic documentary covering in depth the subject in three different countries!

  19. eSports didn't start in Korea. It existed in the 70s and 80s in US and Japan with national game tournaments. Street Fighter 2 was probably the first game to have an international tournament. The PC and online multiplayer allowed anyone with a computer to play and compete. That is what skyrocketed eSports. It just so happened that Korea was forced into it with the "ban" on consoles. Korea still had consoles. There were Korean re-branded Japanese consoles and later Playstation bangs as well. They just didn't capture the market like Starcraft did. Spending hundreds of dollars to buy a console and the cartridge to play alone or with a friend is a hard ask to a Korean parent versus a few dollars to go to a PC bang to play for hours with multiple friends.

  20. I knew they were gonna talk about Genshin Impact before watching the video and boy was I right about it lol

  21. JAPAN gaming giants they will and always will stay there at the top! western triple A gaming industry most of them concentrate on GAMBLING, LOOTBOX 0.0000000000000001 chance to get the item you want, reuse of old assets, greed, no innovation games, stale games.
    in short. CASH GRAB GAMES milking you like no tomorrow.
    if you are going to buy western games. buy indie developers games they are the one who really create good games and deserve your money. only a handful are good but most of them. CASHGRAB

  22. Japan's games may be King but China's Genshin Impact is Emperor lol!

  23. For me, Japanese games looks interesting, but mostly they keep for themselves (didn't release with English version)

  24. The exclusivity model of Japan's console-dominated gaming industry is what is killing itself. Companies like Nintendo and PS that demands exclusive rights to games ends up constraining titles from reaching the entire player-base, which is now spread across multiple platforms. In the past, consoles are very different in their style and capabilities, but nowadays the difference is really just in name. Xbox, PS and Nintendo Switch are now converging in terms of design and capabilities. So while they can no longer differentiate themselves from competitors using hardware, they try to do it via controlling video game titles through exclusive arrangements.

    But video game titles NEED to reach a wide player-base in order to succeed. The exclusivity model prevents this from happening. Western games are mostly concentrated in the PC segment, but for those that do target consoles, they also release PC ports within 1-2 years. Japanese game developers on the other hand, stubbornly stand by their exclusive arrangement with the respective console companies while strangling themselves to death.

    Another problem is their failure to respond to greater technology trend. With smart phones now becoming better and better, there is almost no advantage that hand-held consoles have over smartphones anymore. And whatever the consoles can do, PC can do it better. So if their gaming industry is still console-dependent, they are going to die. Because guess what? Almost everybody has a smartphone nowadays and every household has at least 1 PC. Console ownership is probably like less than 1 in 5. So if Japan keeps locking themselves to console market (which is already saturated as it is), then they will literally suffocate to death.

    The other issue is the localization effort, or should we say "globalization" efforts. In the past, the domestic market was large enough to sustain Japan's gaming industry, hence they don't have to put too much effort into pushing the games abroad. Usually, they just wait for foreign third-party localization companies to approach them and pick up potential titles. This can no longer work. The Chinese gaming companies understand that treating foreign players overseas as an after-thought not only risks games being quickly overshadowed or out-tech by newer titles, they also recognizes that it is bad global PR. Hence many of them go for simultaneous global release whenever they can. If the Japanese remain stubborn and refuse to change their business model, they will have to eat dirt within the next 2 decade, especially with aging population affecting their domestic market.

    The Japanese gaming industry isn't lacking in tech-innovation or content-innovation. They are suffering from business model-stagnation. Which affects a lot of their huge corporations, not just in gaming industry. Old-fashioned and outdated thinking in the upper management of these companies are what is killing their future.

  25. Isnt the reason for the decline in market share of japan simply that the market grew very large and japans game devs are focused on consoles, while consoles only make up a relatively small part of todays gaming market?

  26. the whole keep up with the jones's idea should be rejected diversification development styles should be the goal

  27. they lose in market share but their creativity is still one of the best in the world, story, gameplay, mechanic, game music, game like nier automata, shadow of the colosus, katamari damacy, gravity rush is state of the art of gaming medium

  28. The playstation is unsurpassed… now especially with Fromsoftware releasing kickass games.. I still consider japanese games to be of the highest quality..

  29. Japan gaming industry was like Ethereum, it has his first mover advantage now there are others like Solana and Avax who want some marketshare

  30. i think for console japan is still the best but for online and mobile, i think china and korea is quite big competitor for them

  31. Now u have GameFi, NFTs, DeFi and the METAVERSE.. Another Game Revolution is happening as we speak.

  32. I remembered playing Ace Combat. Loved 5 and 0. But then Assault Horizon came out and it's the most blandest garbage.
    Of course the newest Ace Combat 7 and gave me that unique Japanese game experience I wanted and not a Japanese game trying to be a western one.

  33. I dont think Xbox made a huge impact on the console gaming industry when it first came out. During those times, PS2 still dominates.

  34. I run gaming corners at events and after 10 years of experience I'd say: stick with Japanese technology!
    In those years I never had a dreamcast, NES/SNES or playstation die on me, yet I had 2 OG Xboxes refusing to read disks and 12 Xbox 360's red-ring.
    When doing maintenance you can immediately see the difference between a Japanese and an american product: both the gamecube and dreamcast have been built with several PCB's nicely stacked on top of each other whilst still having good airflow and rf/insulation. Xbox 360? all plastic and everything printed on a single pcb with a huge heatsink that can't even cool it properly.

    I don't care how "great" those xbox games were, the build quality is just trash! and the later models have DRM problems. So, no more American crap for me!

  35. The answer would be YES. Because they have Nintendo!

  36. im a retro gamer. video games back in the day have rich stories, a start and an ending. today it's all graphics and level up non sense

  37. Forget Rez and Tetris Effect. Tesuya Mizuguchi is the guy behind Sega Rally. Now that's a legacy.

  38. So it was the Chinese that brought these stupid freemium money trap games primarily into existence… that figures… just another reason to dislike them.

  39. This video is very well researched and accurate. I hope Japan continues to dominate the games industry, I grew up with games from Japan and it’s what’s kept me playing from the 90s. It would feel like something is missing if Sony and Nintendo were not around. Not that this is likely as Nintendo and Sony are dominating Xbox with market share continuously.

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