Video Games in Japan

PROSPECTS

Difficult time for mobile games manufacturers as invested consumers build on what they know

While mobile games saw ongoing growth in 2018, it is becoming increasingly difficult for mobile games manufacturers to develop new hit titles. The top three game titles by value sales in the final year of the review period were all first released between 2012 and 2015.

Investment in eSports expansion as consumer interest increases

Japan is beginning to see notable investment in eSports, which is helping to drive expansion in the market. The World Shadowverse Grand Prix 2018, held in Chiba in December, offered a USD1 million winner’s prize.

Price drops and manufacturer investment increase popularity of AR/VR headsets

AR/VR headsets are proving slow to grow in Japan. The high prices commanded by such equipment and the lack of software or contents that require the use of AR/VR are serving as obstacles to development.

COMPETITIVE LANDSCAPE

Nintendo retains the lead in video games, but competition is close behind

Having overtaken Bandai Namco Entertainment in 2017 as a result of the launch of Nintendo Switch, Nintendo retained the lead in video games in the final year of the review period despite a decline in value share. Nintendo Switch maintained good sales in 2018, following on from a strong performance in 2017.

Pokémon’s appeal to children and adults alike ensures it continues to perform well

The Pokémon brand maintained good sales in both static console games, with Pokémon: Let’s Go, Pikachu! and Let’s Go, Eevee!, and mobile games, with Pokémon Go. Moreover, the persistent popularity of Pokémon led to the launch of new Pikachu and Eevee versions of the hand-held digital “pet”, Tamagotchi, at the end of the review period.

Sony discontinues PS Vita, but the next generation static console unlikely to be too far off

2019 saw Sony end production of the PlayStation Vita portable console, which has struggled to build a following amongst gamers since its launch in 2011. The company has no plans to develop a replacement hand-held console and is set to focus, instead, on its static console games and online service.

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