2008 Japanese game retail tallied, tumbled
Has it really come to this? Not even a DS hardware revision could salvage another woeful year for Japanese game retailers. Despite closing on a high note, 2008 marked a 15 percent decline in retail sales from the previous year. Hardware sales accounted for the biggest drop, managing a paltry ¥250.5 billion ($2.6b) in revenue -- down 23.5 percent from 2007. Software sales fared better, falling only 7.9 percent to a total of ¥332 billion ($3.5b).
Internally, Japan is suffering through a recession, and, externally, global economic factors have crippled the country's export trade for some time. It's not just high-priced electronics that are turning off foreign consumers, though, in some cases it's the quality of goods. Exhibit A: Only one Japanese-designed game managed to crack our annual Top 10. (Hint: Not Wii Fit.)
[Image credit: goodcatmum]
Internally, Japan is suffering through a recession, and, externally, global economic factors have crippled the country's export trade for some time. It's not just high-priced electronics that are turning off foreign consumers, though, in some cases it's the quality of goods. Exhibit A: Only one Japanese-designed game managed to crack our annual Top 10. (Hint: Not Wii Fit.)
[Image credit: goodcatmum]






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Reader Comments (Page 1 of 1)
Mr Khan @ Jan 6th 2009 2:06PM
A trio of problems that hold that market back:
1: Exchange rate. Even as Japanese developers are trying harder to cater to other tastes, they are simply getting less for their efforts no matter which way they sliced it, unless they drastically increased costs in America, which would, of course, be counter-intuitive
2: The decline of console gaming. There's a reason why PSP is doing so much better in Japan than on the rest of the planet. The Japanese do not, largely, value the inherent advantages of console play to the point where they'll pay more to be plugged in
3: Much like other markets elsewhere, they bet too heavily on the HD consoles, but this is a universal problem, so it's not particularly damaging to them by comparison
ymmv @ Jan 6th 2009 2:13PM
The Japanese bet too heavily on HD consoles? I think Japanese developers did just the opposite. Japanese publishers have been very reluctant to move to HD consoles because of the expense and the simple fact that the DS and PSP are more popular than regular consoles. The majority of all Japanese games are still released for handheld consoles, the PS2 and now the Wii. It's the opposite in the west where devs don't really feel the love for handheld consoles and would rather create HD games.
Evan @ Jan 6th 2009 2:23PM
Exactly. The niche games like visual novels and fighters that were plentiful on the PS2 are absent on the PS3. Either the development costs are too high to make a niche game, or the install base is too small to support a niche game. Either way, most developers have not jumped onto the HD bandwagen.
LaughingTarget @ Jan 6th 2009 5:37PM
It's more of a switch to PSP, DS and Wii than it is a loss of actual units. The PSP, DS and Wii bring in less revenue than the PS3 or other home consoles do. This switch reduces revenue. Also, the games on these systems are less expensive than the "bigger" name units.
That's my prediction. I would like to see a comparison of year over year units sold.
That and the exchange rates do have a big impact. Japan already made the stupid mistake in believing they could just print up money and "stimulate" the economy through government spending in the early 1990s. They aren't buying into the bogus Keynesian theories this time around and their currency is getting incredibly strong because of it. We in the west are going to see a huge increase in prices in the near future because Japan isn't going to subsidize our stupidity.
HitNRun @ Feb 10th 2009 8:42PM
I think you're right, LT. I'd hardly call this generation a bad one considering the staggering sales heights of the Wii, DS, and (relatively speaking, in Japan) PSP. The sales and games just aren't focused in the same fields as those enjoyed by the US and Europe.
And you're also right about the economics. For the moment I think we're going to get big price cuts as US private people and corps are hoarding cash while both US and Japanese companies slash prices to get them to spend it. But once that "stimulus" (and all the other ones after it) catches up, look out. That's going to be some epic inflation.
Alien Lord @ Jan 6th 2009 2:12PM
This doesn't surprise me at all, the Japanese haven't made good games in large numbers since the SNES, they keep turning out repetitive simplistic animes in the guise of a game.
kamiboy @ Feb 2nd 2009 11:59AM
Bwha ha ha ha ha ha ha ha ha!
No quality games since .... Bwha ha ha ha ha ha!
Thank you internetz, just when I think the chimpanzee like de-evolution of the human race has finally hit rock bottom you break out the bulldozer piloted by guys like this Alien Lord mongoloid here.
So, let me see if I get this right, Mr. game expert, western developers essentially re-farting the same game since Catacomb 3D back in '91, only with better graphics and a new name, in your view somehow overshadows the only evolution in the game industry having come form the east since the videogame crash in the 80's? Hmmmm... and intriguingly cocktacular deduction my dear four legged friend, but for future reference I would leave the thinking to beings capable of the act, hmmmm, old boy?
Sure there has been a decline in volume, but not quality, coming from Japan since 2006, but seeing the westerner's try to fumble with the torch having been thrown in their faces by just continuing doing the same thing they've been doing for two decades, only now they are doing it on consoles is the apex of pathetic.
Keep enjoying those FPS's you twat.
Evan @ Jan 6th 2009 2:15PM
It has been a pathetic year for Japanese style gam Games like "Tatsunoko vs Capcom" that unquestionably would have gone to the PS2 a couple years ago are being released on the Wii even though they don't involve waggle. 2nd tier developers seem to be taking a very cautious approach to this generation, so many of the JRPGs and visual novels that made up the bulk of the PS2's Japanese game library are absent.
tmacairjordan87 @ Jan 6th 2009 2:19PM
Maybe if they would start putting effort back into their games and trying new things instead of releasing the same PS1 quality rpgs all the time they'd start making a comeback.
HitNRun @ Feb 10th 2009 8:28PM
Looks like the Japan-bashing is hurting some feelings among basement-dwelling downvoters. The ironic thing is that the Japanese developers acknowledge the problem too. They, unlike their Cloud-slashfic-writing diehards in the US, recognize the limited appeal their game(s) have, they're just trapped by the economics.
avan @ Feb 11th 2009 12:09PM
well im glad this is happening, who isnt tired of the same horrible voice acting turn based crap, trains & dates simulators and all the other oddities the japs used to surprise us with. crisis brings opportunities let's hope 4 something better