Game Business Game Business Overvi Overvi ew ew in Japan in Japan Q Entertainment Shuji Utsumi
May 08, 2015
Game BusinessGame Business OvervieOvervieww
in Japanin Japan
Q Entertainment
Shuji Utsumi
Quick Self Introduction
• Video game career started– Preparation for SCE/Playstation launch
• Corporate staff– PS USA launch
• Corporate, 3rd Party, Product acquisition
• Sega of America– Product development: restructuring
• Sega Japan– Dreamcast launch
• Disney– Kingdom Hearts etc.
• Q Entertainment– Lumines, 99 Nights, Guardian Hearts, Genki Rockets
Japan Has Long Game HistoryJapan Has Long Game History
Early 80’sEarly 80’s
Arcade Games– Space Invader: Taito
– Namco, Nintendo, Sega Nintendo
– NES
– Super Mario Brothers
– Donkey Kong
– Lots of 3rd party Companies are born.• Namco, Konami, Capcom, Hudson
BTWBTW
Japanese game market is somehow originated from Jewish initiatives.– Taito
• Cogan
– Sega• Rosen
Late 80s-Early90sLate 80s-Early90s
Nintendo: SNES– Zelda, Star Fox, Mario Cart,
Sega: GENESIS– SONIC
The more 3rd Party Companies– Enix, Square, Koei, Tecmo
The rise of 3rd Party Companies in US– EA, THQ, Activision, Midway– Street Fighter, Final Fantasy, Sports Game, Drago
n Quest, NBA JAM, Mortal Kombat
Mid-Late 90sMid-Late 90s
PlayStation (Another platform from Japan)– Game become 3D
– Sports, Racing, Fighting (Reality Simulation) – Crash Bandicoot,
Nintendo Cube, Sega Saturn, XBOX
Early-Mid 2000
• The peak of PlayStation– The rapid growth of US and European market and companies
– Japanese companies grew, but lost market share
– Sega / Nintendo had hard time.
• Microsoft joined the platform war– FPS, Sports
• Mobile Business – (i-mode, Another platform but domestic)
Early 2000The rest of the world
• The rise of new business model in game business– PC : casual and serious (US)– PC server based subscription and item sales (Asia,
Korea & China) model was born.• Push from Korean Government• IT Babble
• Internet
Late 00-Now
• Nintendo ruled the game again– 3rd party companies bet wrong
– Battles among toy, electric device, computer• The winner is not technology so far.
– Japanese 3rd parties are losing especially in technology area against West.
• Technology lead is disappearing in Japan. – Graphic (CG) technology, Network
JapanJapan country Competitive country Competitive advantage is diminishingadvantage is diminishing
Market is getting relatively small in Japan. US and Europe have grown more, so have local companies.– Japan share 30% => 15%
Microsoft is beating Sony– Network service– Development environment (3rd party support)– Hardware cost– CG technology
ObservationObservation
The Japanese game business has grew with global 1st party (platform holder) – Lots of global players
• Capcom, Square Enix, Bandai Namco, Konami
– But with market maturity, the influence of US platform, the rise of new business model in PC and mobile, the Japanese software / game industry is now in new challenge.
Trend Examples
• Video game Market is getting matured.– Hollywood like business model now applies to
game business.• Go big or go home
– Contents provider is required to be Specialized or focused to survive.
• US & Europe– FPS, Music games
• Japan– RPG, Nintendo family games
Current Global SceneCurrent Global SceneBig Change is happeningBig Change is happening
Technology matters– Internet, Social– Graphics, AI, Cloud computing, Mobile
Game is now not only for Geeks but for mass audience.
– Nintendo DS and Wii– PC Casual game audience– Mobile SNS (esp. in Japan)– PC Asian market
The new industry players are rushing in the industry.
– China, Korea, East Europe or all over the world– Developers from all over the world– New players from different industry (IT, Web)
Another big Change is happening!
Join our Quest for the future Entertainment