Video Games in Japan

PRE-COVID-19 PERFORMANCE

Static consoles suffers from a lack of new product development in 2019 despite Nintendo still posting growth

When it came to static consoles and hand-held consoles Japan saw mixed results in 2019. Nintendo Ltd extended its dominance with the launch of Nintendo Switch Lite proving a success in hand-held consoles following its launch in 2019, although it did cannibalise sales of Nintendo 3DS.

Lack of popular new titles sees growth slow in mobile games in 2019

Mobile games remained the most significant contributor to sales of video games in 2019, although the category did see significantly slower growth than in the previous year. The reason for this is partly down to the general lack of movement in the most popular titles.

E-sports set for bright future as large cash prizes attract gamers

Japan is beginning to see notable investment in eSports, which is helping to drive expansion in the market. KDDI, one of the three main telecommunication companies in Japan, sponsors JeSU, the Japan eSports Union, which was formed in 2018.

2020 AND BEYOND

COVID-19 impact

In 2020, sales of video games are now expected to decline by 4% in constant 2019 value terms, which represents a slight improvement on the performance forecast in our 2019 edition of toys and games.

Affected products within video games

Video games software (digital) is expected to see a stronger performance in 2020 than in the previous year, with downloads expected to thrive with consumers trapped at home and looking for entertainment. Key to this will be the performance of mobile games, with any smartphone or tablet owner able to play these titles without any additional hardware.

Recovery and opportunities

Video games is projected to see mixed fortunes over the forecast period driven by the changing way in which consumers enjoy video games and demographic factors. Over the review period the penetration rate of static consoles in Japan saw steady growth, reaching its peak in 2019; however, this rate is projected to fall dramatically over the forecast period.

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