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Games: Nintendo – the winner takes it all

Game industries in total are MUCH bigger than music industries… in Japan game industries are about 10 times bigger business than music industries… Last weekend we had the Tokyo Game Show – read some key points below! From 2006 Japan’s game sector changed dramatically- Nintendo created several paradigm shifts, and “took off”. Read more about Nintendo driven paradigm shifts below. US games giant Electronic Arts (EA) would rank 5th in sales, was EA Japanese. Japan’s games industries are big!

Nintendo income takes off: Nintendo broke the PC-style race for faster machines, and broke out of the limited market of hard core gamers. From FY 2007 Nintendo’s income takes off:

Operating income for Japan's electronics companies
Operating income for Japan’s electronics companies

Nintendo’s DS: braintraining instead of shooting.

SONY’s PSP goes for power, and Nintendo’s DS changed the paradigm + went for lower price. By the way, we see a shift from TV video games to portable and mobile phone games in terms of numbers: for current 7th generation game platforms portables outsell TV video consoles 2:1. DS’s success encouraged Nintendo to develop the Wii.

sales of SONY-PSP vs Nintendo DS in Japan and globally

Avoid the dinosaurs:

global sales of Nintendo Wii, SONY Playstation PS3, and Microsoft Xbox-360

“Too many powerful consoles are like ferocious dinosaurs. They might fight and hasten their own exinction” (Nintendo’s Shigeru Miyamoto in an interview). Nintendo’s Wii has much less power, lower screen resolution, and is much cheaper to make and cheaper to buy than PS3 and Xbox360. Nintendo makes money on every Wii sold.

Sales of Nintendo-Wii vs SONY-PSP vs Microsoft XBOX
Sales of Nintendo-Wii vs SONY-PSP vs Microsoft XBOX

Report: “Nintendo and Japan’s games industries” (9th edition, 181 pages, release October 15, 2008, pdf-file for download):

Eurotechnology report on Nintendo and Japan's game industry
Eurotechnology report on Nintendo and Japan’s game industry

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games

XBOX 360 Japan launch in Tokyo on Dec 10, 2005

Very small impact for XBOX in Japan to date

XBOX 360 Japan Launch makes a new attempt for breakthrough in Japan

by Gerhard Fasol

Microsoft launched XBOX 360 in Tokyo today Dec 10, 2005:

XBOX launch in Tokyo Shibuya on Dec 10, 2005
XBOX launch in Tokyo Shibuya on Dec 10, 2005

The original XBOX made only very small impact in Japan’s console market, which is dominated by SONY’s Playstation series and Nintendo’s Gameboy series.

As we show in our J-Games report the structure of Japan’s game software market is very different to that of the US and Europe. While in US and Europe shooting and action games are popular, in Japan role playing games in sophisticated phantasy worlds dominate. Microsoft has learnt this lesson, and has made far deeper preparations to gain cooperation by Japan’s mainstream software houses for the XBOX-360, so that we expect increasing XBOX market shares. Microsoft is also supporting the XBOX-360 introduction with a compaign including the XBOX-360 Lounge in Tokyo-Aoyama.

Sofar Microsoft does not have an equivalent for the very popular handheld DS and PSP.

Japan game market report (398 pages, pdf-file):

Copyright 2013 Eurotechnology Japan KK All Rights Reserved

Categories
games

XBOX 360 Japan Lounge Tokyo Aoyama

No breakthrough for XBOX in Japan yet

XBOX promotion in Tokyo

XBox has not yet achieved the breakthrough in Japan’s competitive game markets – and Microsoft is relentlessly working to make XBox a success in Japan.

Japan game market report (398 pages, pdf-file):

The new “XBox 360 Lounge” in Tokyo/Aoyama

XBox 360 Lounge in Tokyo Omotesando
XBox 360 Lounge in Tokyo Omotesando
XBox 360 Lounge in Tokyo Omotesando
XBox 360 Lounge in Tokyo Omotesando
XBox 360 Lounge in Tokyo Omotesando
XBox 360 Lounge in Tokyo Omotesando

Japan game market report (398 pages, pdf-file):

Copyright 2013 Eurotechnology Japan KK All Rights Reserved

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games M&A

Tokyo Game Show TGS2005: Playstation vs Microsoft XBOX vs absent Nintendo DS

Nintendo wins on mindshare despite traditional absence from TGS

Tokyo Game Show TGS2005: Battle of the console and handheld platforms, while native mobile game applis on the path to disrupt

by Gerhard Fasol

Here some highlights of this year’s Tokyo Game Show TGS2005:

SONY vs Microsoft.

At last year’s TGS2004 Microsoft’s XBOX exhibit was pretty low-key in a secondary hall. This year, at Tokyo Game Show TGS2005, Microsoft moved with a much bigger exhibit up into the prime position of the main hall right next to (current) market leader SONY Computer Entertainment (SCE)… While in 2004 and before, SCE was the uncontested leader of the market, Microsoft is not accelerating efforts with XBOX-360. While SONY’s PSP is fantastic, it’s being outsold in Japan by Nintendo’s DS…

XBOX at Tokyo Game Show 2005

Japan game market report (398 pages, pdf-file):

XBox as a broadband home entertainment machine:

XBOX home entertainment system at Tokyo Game Show 2005
XBOX home entertainment system at Tokyo Game Show 2005

wLAN hotspot for PSP (SONY PlayStation Portable) for game sharing and
download. However, with a little bit of software, PSPs could be used to hold VOIP telephone
calls via these (or other) wLAN hotspots:

SONY Playstation WiFi spot at Tokyo Game Show 2005
SONY Playstation WiFi spot at Tokyo Game Show 2005

Japan’s game industry consolidates

This year is the first appearance of merged BandaiNamco, which used to be separate companies until recently:

Bandai and Namco merged - at Tokyo Game Show 2005
Bandai and Namco merged – at Tokyo Game Show 2005

The following figure summarizes some of the recent mergers in Japan’s game software industry:

Consolidations and mergers in Japan's game industry (Tokyo Game Show 2005)
Consolidations and mergers in Japan’s game industry (Tokyo Game Show 2005)

SONY staff greeting customers at the end of the first day of the show
(while greeting customers there were facing Microsoft’s impressive Xbox360 exhibition area…):

SONY at Tokyo Game Show 2005
SONY at Tokyo Game Show 2005
SONY at Tokyo Game Show 2005
SONY at Tokyo Game Show 2005
SONY at Tokyo Game Show 2005
SONY at Tokyo Game Show 2005

For a summary, see: Japan game market report (398 pages, pdf-file):

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