We all know at this point that Japan's console market has shrunk. We could go on and on about the factors that have lead to such a decline, but let's just cut straight to the chase: 2015 saw the market hit a 26 year low. What this means is that the overall value of the market continued to fall, with it being worth ¥321 billion - roughly $2.7 billion - last year. That's a decrease of 13 per cent compared to 2014.
To put that into perspective, Famitsu reckons that the mobile market is up 18 per cent year-on-year, and is worth an impressive $5.8 billion - it's clear that this growth is having a direct impact on traditional consoles, as we've known for quite a while now.
However, it's safe to say that 2016 is looking like a strong year for consoles in Japan, with numerous big publishers preparing to launch blockbuster titles such as Final Fantasy XV. Of course, it's far too early to tell whether or not a slew of new software will be enough to coax some kind of market growth, but it'll be something well worth keeping an eye on as we move further into the year.
[source vg247.com, via gamesindustry.biz]
Comments 12
I'm sure the releases of popular Japanese titles like FF15, Persona, DQ11 will have an effect on overall sales, but the Japanese market has been trending this way for awhile. It is also understandable and similar to what I remember people predicting about the US console sales in years past. I think it eventually can recover, whether it will and whether the big Japanese developers are willing to wait it out is a complete unknown. Many will go the route of Konami and publish mostly mobile games, hopefully some of the big boys will stay put, and eventually be rewarded for releasing awesome AAA console experiences.
I think we've got to cross everything that Final Fantasy, Persona, etc come out this year and are good. Nintendo also needs to ensure that the NX - if it's a console - is good, too.
I think all being well we could see an increase in 2016, but if we don't, I think the downward spiral is only going to continue. And I think it's probably all over at that point.
That said, Japanese console games are finding success in the West on PS4 and PC, so it's not all doom and gloom. There's still a market there if the budgets are correct.
It's important to note that this article did not put into account digital sales or use of any kind.
Just wait till next year Japan - the free to play bubble will burst soon. My wife plays less candy crush these days and its starting to lose conversation space in our daily lives. I've also noticed a number of her friends don't offer me lives anymore. Combined with a now general acceptance amongst her circle that its used for time wasting. They will all stop playing soon. She was an early adopter so everyone's aware. Give it 2 years and King will be the new Zynga. No idea what that has to do with this topic but come on Japan!! Console for the win.
This is why I laugh when people say Japan is imperative to success. I'm sorry but at this point, Japan is irrelevant to the success or failure of a home console, just look at the Wii U sales vs. Xbox One. People over there wouldn't take a free Xbox One, let alone buy the damn thing, and yet worldwide hardware sales place MS' console ahead of Nintendo's. It sucks, especially because many of my favorite games of all-time came from Japanese developers, but at this point I don't blame companies - especially Sony and MS - for putting the focus on the West.
@Gamer83 Well Nintendo is always going to have focus on Japan largely because they are a (relatively) small Japanese company. I think whatever happens they will always continue to try to sell consoles in their native land... assuming the NX is some kind of console, which I believe either Iwata or Kimishima confirmed in the one or two sentences that have been spoken about it. What form that console will take is anyone's guess, of course. It would be interesting if it was something more mobile than a traditional console. That could certainly breathe life into Japan's market, considering mobile game sales are up.
I think the promising line up of PS4 games, especially of the type the Japanese are interested in, plus Nintendo's 2016 Wii U line up (which is basically Zelda, Star Fox, and Pokken, but those are all games Japan likes, so there you go) will at least salvage the situation for 2016. If the NX launches in 2016, no matter what it is, that will help, because early adopters in all territories are going to buy it and Japan will be no different.
Basically I don't think this year will be a repeat of last year, though by how much is hard to say. The PS4 has a lot of work to do, but it can handle it.
@Gamer83 Sorry, the first part of my comment was to you and then the rest of it was just sort of a general reply to the article.
@TheLobster
Yeah, I understand why Nintendo focuses on Japan, it doesn't change how I feel regarding the issue though. The results speak for themselves right now. Wii U is winning in Japan, but the console gets slaughtered when worldwide sales are factored in. I'd like to see Nintendo change things up a bit. Not saying the focus needs to be all Western, but its presence needs to become much stronger and no matter how much the company or the fans dislike it, a strong partnership with the likes of Rockstar, Bethesda and EA is important.
@Gamer83 Oh, I totally agree. A console with Nintendo's first party line up AND solid third party support? Sony and Microsoft would be screwed. Especially if they actually advertised the damn thing. I'm a Nintendo fangirl at heart and it pains me to see how they are handling things now. That said it has given me the opportunity to play Playstation and that's been wonderful. I mean no matter what I wasn't getting The Last Guardian or FFXV on a Nintendo console anyway.
But yeah these are more and more global times, with each passing month really, and to ignore that is to see, well, only ten million consoles sold in three years, for example.
I also have a feeling that Japan is a country more likely to go crazy for VR than most others, could do both consoles and VR some good
@TheLobster
I've pretty much moved on from Nintendo's consoles because of what seems like the absolute refusal to bring third parties in. Still like the Mario and Zelda games a lot but I need more than that. I don't know if it's stubbornness or what but Nintendo doesn't seem to be in any hurry to fix the third party situation which I think it the one that needs to be solved before anything else. Marketing is an issue too but winning a big part of that battle is having an appealing platform with a large stable of developers, first and third party, behind it. Get that taken care of and you immediately have something you can sell people on.
@Gamer83 They do seem to be able to bring in the third parties on their handhelds, though how much of that is being the only real option is up for debate. At the start of every console generation I hold my breath and think, "Don't do it! Don't alienate the third parties again!" But it's been a decade and a half so I don't think they are coming back for the consoles, yeah... But hope springs eternal. And if the NX is a hybrid the third parties may have no choice. Or they will flee entirely. It remains to be seen.
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