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GI: Microsoft's Toughest Customer: Japan

Itagaki said:
Four years ago when the PlayStation 2 came out I did an interview with Famitsu. And everyone was like, ‘PlayStation 2 is going to be the winner.’ My comment at the time was, ‘There’s not going to be a clear cut winner.’ Now four years later, that’s the case. In the same way, I’m being asked a similar question, and I’m going to answer it the same way. In four years there’s not going to be a single machine that’s the definite clear cut winner.
I wonder if Itagaki honestly believes his own words. For someone whose constantly being proclaimed as able to speak freely he certainly pitches the MS line alot.
 
Nintendo, Playstation, Ipod...

those are all products that have been engrained into culture. They're more than words that are used to represent the class of items that they belong to, they're actually desirable in and of themselves.

The Xbox360 won't establish this sort of cachet... and aping the Ipod won't help it any.
 
Why do people not living in Japan care so much if the console succeeds in Japan?

I never understood that. It's not like the Xbox 360 isn't getting big games from Japanese developers. I guess if you're really into the niche quirky Japanese games this is a big deal cause you probably won't get a lot of the obscure games on your console. Frankly I only care how the console is doing at home because the only Japanese games I have interest in are big global franchises.

Some people act like Japan makes or breaks a console. It's not even the biggest or 2nd biggest market for games anymore. If they pass on a good console because of where it's manufactured and want to be stuck with a monopoly in the game industry then that's their problem, not mine.
 
Videogame market cap for 2004 (in US dollar)

Japan - 2.9B
US - 4.9B
UK - 1.5B
France - 0.6B
Germany - 0.5B
China - 0.1B
S.Korea - 0.2B
Taiwan - 0.3B

* UK+France+Germany = 1.5+0.6+0.5 = 2.6B , though include other european countries it would be around 3B

- High profile videogame developers are in Japan
- Japan is the root of this culture
- Japanese videogame market size is very big even compare to a continent like Europe
- If you don't win in Japan , you don't get FF,MGS .....

Please tell me why MS shouldn't care ? why MS should leave this market while they might be able to compete against Sony in both US and Europe , Can you imagine if MS dominate both US and Europe but still be in the 2nd just because Sony take 80% of Japanese market ?
 
The Japanese market is the seat of the two console manufacturers who depend on the games industry, the uncontestable winner of the past four generations of console and three of handheld, home to most of the highest-profile developers, and (per gconsole's figures) the region with the highest per-capita sales (as countries go, the UK is a close competitor, though) even through a long-term economic depression and during the lull period of a generation it started earlier and saw less competition in. It also has the easiest access to the small but growing middle-class Chinese market, a growing national focus on exporting cultural products, and a level of infrastructure for broadband applications only rivaled by South Korea. Hence, from a purely business perspective, why Japanese sales are significant.
 
---- said:
Why do people not living in Japan care so much if the console succeeds in Japan?

I never understood that. It's not like the Xbox 360 isn't getting big games from Japanese developers. I guess if you're really into the niche quirky Japanese games this is a big deal cause you probably won't get a lot of the obscure games on your console. Frankly I only care how the console is doing at home because the only Japanese games I have interest in are big global franchises.

Some people act like Japan makes or breaks a console. It's not even the biggest or 2nd biggest market for games anymore. If they pass on a good console because of where it's manufactured and want to be stuck with a monopoly in the game industry then that's their problem, not mine.

Yeah, I feel the same way. I think it's more of a status symbol than anything..."If it isn't good in Japan, it's just not good at all!" or some shit like that. Xbox has succeeded even without Japan selling like hot cakes.

It is still important to have third parties from Japan to develop games for any hardware, but the hardware doesn't need to necessarily sell in Japan.
 
Striek said:
I wonder if Itagaki honestly believes his own words. For someone whose constantly being proclaimed as able to speak freely he certainly pitches the MS line alot.

Even in the US it's pretty obvious that PS2 won hands down. You need to be wearing some seriously fucking rosy glasses to say what he's saying.
 
Troidal said:
Yeah, I feel the same way. I think it's more of a status symbol than anything..."If it isn't good in Japan, it's just not good at all!" or some shit like that. Xbox has succeeded even without Japan selling like hot cakes.

It is still important to have third parties from Japan to develop games for any hardware, but the hardware doesn't need to necessarily sell in Japan.

the sucess of xbox is very relative
 
Yusuke Naora, Producer, Square Enix (Code Age), “We haven’t received any information as far as what titles will launch along side the Xbox 360. I don’t believe it’s the hardware that matters – it’s the software. The system needs very good software constantly after the hardware is released.” But in general, I think a lot of people will accept the Xbox 360. Xbox will be very strong with internet games, and I believe that will help them expand their audience. With the first Xbox, it was hard to determine which audience Microsoft was aiming for. This time, they’re really putting a focus on internet games. The strength of Xbox Live will really help the console become more accepted.”


I think the interview was done before the retard pack fiasco.
 
------ said:
Why do people not living in Japan care so much if the console succeeds in Japan?

I'm currently living in Japan, so I guess you could say Japan matters to me.

I think the reason that Japan matters to gaming fans is because most of us have been gaming fans for (quite a few more than) four years, or in other words, way back when everything significant that happened in non-PC gaming somehow originated in Japan. Before the Xbox, the last real American console I can think of was the 3DO. And before that, I can't even recall.

Nintendo grabbed the industry by the balls when Atari dropped the ball, until they were balled over by Sony.

I mean, the Xbox is the rule, not the exception. I think one of the major questions regarding the Xbox's viability back when it was announced was "how will the Xbox fare, being an American console?" Now is the time to start evaluating the answers to those questions, since Microsoft is wrapping it up at this point. I think that this is the PERFECT time to be discussing how the Japanese market has been influenced by the Xbox, and how Japanese developers view the console. I can see why you want to ignore Japan altogether, but the truth is that aside from the Xbox project, Japan's really been all there is in terms of significant console and handheld gaming since the Atari crash.

I know no other world.
 
Zer0 said:
the sucess of xbox is very relative
Yeah relative to where you live, which brings us back to my point. Why do people care how a system is selling in Japan if they don't live there? Japanese companies still have to bring their big games out for Xbox or Genesis or any other system if it's selling well in America and/or Europe. The numbers posted show that the Asian market is only the 3rd most important market compared to North America and Europe.

I'm not asking why MS cares, I'm asking why gamers care? As I said before unless you're really interested in some niche region specific games then I don't see why most people give a crap. Seems like just stupid fanboy bragging rights to me.

The Gamecube sold much better than the Xbox in Japan. Am I supposed to care? Is this supposed to be relevant to me somehow? When I go to the video game store I see the Xbox has tons more big 3rd party games released for it than Gamecube. That's all that matters in the end.

People right now are talking up the DS outselling PSP in Japan, I wonder if these people really think that is going to change anything in America where the PSP is steamrolling over everything? Unless you're financially invested in these companies the only reason to care about how well a game console sells is because you want good 3rd party support for it. 3rd party support depends upon how well the console is selling in your region, not worldwide. If Xbox 360 somehow outsells PS3 in America, but PS3 is still the top selling game system in the world just because of Japan, then I want Xbox 360 not PS3.
 
---- said:
Yeah relative to where you live, which brings us back to my point. Why do people care how a system is selling in Japan if they don't live there? Japanese companies still have to bring their big games out for Xbox or Genesis or any other system if it's selling well in America and/or Europe. The numbers posted show that the Asian market is only the 3rd most important market compared to North America and Europe.

I'm not asking why MS cares, I'm asking why gamers care? As I said before unless you're really interested in some niche region specific games then I don't see why most people give a crap. Seems like just stupid fanboy bragging rights to me.

The Gamecube sold much better than the Xbox in Japan. Am I supposed to care? Is this supposed to be relevant to me somehow? When I go to the video game store I see the Xbox has tons more big 3rd party games released for it than Gamecube. That's all that matters in the end.

People right now are talking up the DS outselling PSP in Japan, I wonder if these people really think that is going to change anything in America where the PSP is steamrolling over everything? Unless you're financially invested in these companies the only reason to care about how well a game console sells is because you want good 3rd party support for it. 3rd party support depends upon how well the console is selling in your region, not worldwide. If Xbox 360 somehow outsells PS3 in America, but PS3 is still the top selling game system in the world just because of Japan, then I want Xbox 360 not PS3.

Or, you know, we can not care about sales ANYWHERE and just get the system we like. That is a much better argument for you to pursue then singling out Japan in this instance.
 
Please, that whole 'why do you care how well a system is doing, you must just be fanboys, wah, wah ,wah' stuff is bunk.

Everyone knows that how well a console sells and how well certain genres sell on that console dictates what future games appear on that console. And trying to imply that all Japanese games are 'niche' and 'region specific' is laughable. If it was just a case of niche games not going to Xbox, then where's FFX, KH, MGS3, DMC etc. There are plenty of Japanese developed games, with international appeal that are less likely to appear on a console that has not done well in Japan.

So stop playing dumb (if indeed you are playing).
 
Xbox - Japanese developers jumped in because they were hoping the Xbox would succeed in Japan. They weren't necessarily making games with the global market in mind.

Xbox360 - Japanese developers learned their lesson and isn't just banking on a success in Japan. They are now making games with the global market as first priority. Look at what Capcom, Namco, Konami are making on 360...it's trying to cater to American/European gamers rather than the Japanese.

Again, as long as Japanese third party supports the 360, Japan's market success is merely symbolic.
 
jman2050 said:
Or, you know, we can not care about sales ANYWHERE and just get the system we like. That is a much better argument for you to pursue then singling out Japan in this instance.
No that's nonsense. Sales are important to pay attention to in your region. You don't pay attention to sales in America and you go out and buy a system like Gamecube and you may end up being very disappointed when you see that the release list isn't what you were hoping for. Sure there are good games on Gamecube in America, but are there a steady stream of them like PS2 and Xbox? Not really because the release list has always been paltry in comparison to the competition.

I'm not singling out Japan. This article was written in an American publication largely for American readers. If you are in Japan the same rule holds true. Why should you care that the Xbox is selling great in America when it's selling so poorly in your region? You shouldn't. If you are living in Japan it makes absolutely no sense to own an Xbox over PS2. All that matters is how a console is doing in your region, worldwide numbers are irrelevant to the likelihood of your own personal satisfaction with the console.
 
---- said:
No that's nonsense. Sales are important to pay attention to in your region. You don't pay attention to sales in your region and you go out and buy a system like Gamecube and you may end up being very disappointed when you see that the release list isn't what you were hoping for.

Sure there are good games on Gamecube in America, but are there a steady stream of them like PS2 and Xbox? Not really because the release list has always been paltry in comparison to the competition.

I'm not singling out Japan. This article was written in an American publication largely for American readers. If you are in Japan the same rule holds true. Why should you care that the Xbox is selling great in America when it's selling so poorly in your region? You shouldn't. If you are living in Japan it makes absolutely no sense to own an Xbox over PS2. All that matters is how a console is doing in your region, worldwide numbers are irrelevant to the likelihood of your own personal satisfaction with the console.

Except I own a Gamecube, but not an Xbox, because I like the games on the GC. I could care less about how either of them is selling in this region, nor did that influence my purchase decision in any way. Therefore, your logic fails.
 
Troidal said:
Xbox - Japanese developers jumped in because they were hoping the Xbox would succeed in Japan. They weren't necessarily making games with the global market in mind.

Xbox360 - Japanese developers learned their lesson and isn't just banking on a success in Japan. They are now making games with the global market as first priority. Look at what Capcom, Namco, Konami are making on 360...it's trying to cater to American/European gamers rather than the Japanese.

I honestly don't see the big difference in "global appeal" between the two launches...
 
Die Squirrel Die said:
Please, that whole 'why do you care how well a system is doing, you must just be fanboys, wah, wah ,wah' stuff is bunk.

Everyone knows that how well a console sells and how well certain genres sell on that console dictates what future games appear on that console. And trying to imply that all Japanese games are 'niche' and 'region specific' is laughable. If it was just a case of niche games not going to Xbox, then where's FFX, KH, MGS3, DMC etc. There are plenty of Japanese developed games, with international appeal that are less likely to appear on a console that has not done well in Japan.

So stop playing dumb (if indeed you are playing).
Um I think I made a clear distinction between important global franchises and regionally important games. The Final Fantasy, Resident Evil, Ridge Racer, Metal Gear, Soul Calibur, etc. franchises are the globally important games. The random Japanese sim games which sells millions in Japan are not that important to most people in the world. MS has gotten a lot of those globally important games. That's all I was saying. A lot of the globally important games that are specific to one platform or another is largely due to exclusivity licenses that the platform manufacturer paid big bucks for. Sony pays big bucks to keep games like Tekken exclusive as does MS for Dead or Alive. There are exclusive games from every territory. MS has probably spent a lot to try to keep the PC developers like Bethesda, iD, Valve, Epic, etc focused on Xbox development only.

I honestly do not give a crap about how a game system does in Japan or Europe and I don't think most people in America do either. Nor do I think the Japanese gamers are overly concerned with how well a game system is selling in America. I have seen enough times that how a game system does in Japan has absolutely no relevance on how successful the system is here. It seems completely like an outdated way of thinking that the game industry is somehow dependent upon Japan.

Comparing how systems are selling worldwide is for nothing more than fanboy bragging rights. If your console of choice is doing great in every region of the world except yours it sucks for you to be owning it.

jman2050 said:
Except I own a Gamecube, but not an Xbox, because I like the games on the GC. I could care less about how either of them is selling in this region, nor did that influence my purchase decision in any way. Therefore, your logic fails.
Well I didn't say everyone did I? Someone is more likely to be satisfied with a game console the more games are released for it. The fact that the Xbox and PS2 are overloaded with games every year increases the likelihood that a person will find the games they want to play. If you're just buying a console for a couple of specific games and you don't expect anything beyond that, then sales don't matter, you're right.
 
---- said:
I honestly do not give a crap about how a game system does in Japan or Europe and I don't think most people in America do either. Nor do I think the Japanese gamers are overly concerned with how well a game system is selling in America. I have seen enough times that how a game system does in Japan has absolutely no relevance on how successful the system is here. It seems completely like an outdated way of thinking that the game industry is somehow dependent upon Japan.

That's because you don't care about Japanese games. If a console tank in Japan then obviously it will have less Japanese support on it. Less Japanese support means less Japanese games that might come in America.
 
---- said:
I honestly do not give a crap about how a game system does in Japan or Europe and I don't think most people in America do either.
Most people here are not the "most people in America" and don't care about same things. If people care how something is selling it could not only be because of bragging rights, but because of the valid reasons you already mentioned. There's craploads of not only niche games, but big franchizes like MGS, FF, DQ, DMC, Tekken that you are not seeing outside of Playstation. Moreover, people here do care about those niche games like Katamari Damacy and such, which are just really good games sometimes.

You look at X360 now and see that it's getting Ridge Racer, RE5 and some others, but first Xbox also started off nicely in Japan with ports of many significant games, but the support just died off afterwards.
 
I don't care about ___ why do you?
I don't understand why ____ sells.
I don't understand why you like ____.
etc.


Oh STFU already.
 
---- said:
Yeah relative to where you live, which brings us back to my point. Why do people care how a system is selling in Japan if they don't live there? Japanese companies still have to bring their big games out for Xbox or Genesis or any other system if it's selling well in America and/or Europe. The numbers posted show that the Asian market is only the 3rd most important market compared to North America and Europe.

I'm not asking why MS cares, I'm asking why gamers care? As I said before unless you're really interested in some niche region specific games then I don't see why most people give a crap. Seems like just stupid fanboy bragging rights to me.

The Gamecube sold much better than the Xbox in Japan. Am I supposed to care? Is this supposed to be relevant to me somehow? When I go to the video game store I see the Xbox has tons more big 3rd party games released for it than Gamecube. That's all that matters in the end.

People right now are talking up the DS outselling PSP in Japan, I wonder if these people really think that is going to change anything in America where the PSP is steamrolling over everything? Unless you're financially invested in these companies the only reason to care about how well a game console sells is because you want good 3rd party support for it. 3rd party support depends upon how well the console is selling in your region, not worldwide. If Xbox 360 somehow outsells PS3 in America, but PS3 is still the top selling game system in the world just because of Japan, then I want Xbox 360 not PS3.

relative in terms of moneylosses to ms but in the other hand coming from nowhere and getting the 2 place and a big name in the videogamebussines is a triumph
 
Zer0 said:
relative in terms of moneylosses to ms but in the other hand coming from nowhere and getting the 2 place and a big name in the videogamebussines is a triumph

Definitely MS is to be applauded for the work they've put in on XBL and the developer support... but if I could play slight devil's advocate.

One competitor was pretty much a lock for first place, the other was pretty much a lock for niche place.
 
DarienA said:
I don't care about ___ why do you?
I don't understand why ____ sells.
I don't understand why you like ____.
etc.


Oh STFU already.

aint that the truth. It's annoying when people can only relate to stuff from their own (limited) perspective.
 
Troidal said:
Xbox - Japanese developers jumped in because they were hoping the Xbox would succeed in Japan. They weren't necessarily making games with the global market in mind.

I thought the real reason was the fact that Microsoft was handing out money to Japanese devlopers like candy?
 
---- said:
People right now are talking up the DS outselling PSP in Japan, I wonder if these people really think that is going to change anything in America where the PSP is steamrolling over everything?

Isn't it amazing how the DS has outsold EVERY CONSOLE AND HANDHELD for the year in Japan and does so on a weekly basis but it only gets mentioned as "outselling the PSP in Japan" but the PSP didn't even outsell the PS2 for last month's NPD number yet its "steamrolling over everything" in America. :lol :lol :lol
 
Striek said:
I wonder if Itagaki honestly believes his own words. For someone whose constantly being proclaimed as able to speak freely he certainly pitches the MS line alot.


This is either a horrible troll or you are incredibly dense to cut up his comments. Why don't you post the whole quote? Here is the full quote:

our years ago when the PlayStation 2 came out I did an interview with Famitsu.  And everyone was like, ‘PlayStation 2 is going to be the winner.’  My comment at the time was, ‘There’s not going to be a clear cut winner.’  Now four years later, that’s the case.   In the same way, I’m being asked a similar question, and I’m going to answer it the same way.  In four years there’s not going to be a single machine that’s the definite clear cut winner.  The entire industry as a whole is losing its power to bring people in.  It’s getting smaller and smaller here in Japan.  It’ll be a similar situation four years from now.  Obviously we don’t have the power to change the entire course of the entire Japanese game industry.  The only way to win in gambling is you have to look at the situation and look at the course and flow of things and figure out where’s your chance.  There’s no way to turn the tide. You can only make the best of the situation.  That’s why I never say in interviews that I want to change the industry or I want to revolutionize the industry.  It’s not possible.“

Here are some more quotes by him:

agaki believes this to be the case as well, “I’m going to tell you the absolute truth.  Most Japanese don’t really care about games.  They’re not interested in games.  Gaming is a very small subculture in Japanese society in general, and it’s getting smaller and smaller.  Obviously I like games, so I’m still in that subculture and community.  But to discuss how the Xbox 360 is perceived in such a small community really doesn’t have that much of an impact in the big picture.  So kids love Nintendo and love Nintendo games.  I have a daughter that’s in grade school and in her class all everyone talks about is Nintendo DS.   The subject of PSP has obviously never come up.  There’s only two children that will talk about Xbox, my daughter, and a child that happens to be one of my fans.   (laughs)  So it’s really a discussion about what are the needs of the community.  That community may be looking for such and such system.  The needs vary for each community.  The community as a whole is getting smaller and smaller, and in a few years it’s going to be harder and harder to say for sure who won.  Some people say my comments lack specific details because I throw out examples without giving specific opinions.  But as a gambler, I can assure you that my read of the situation tends to be accurate most of the time.” 

Team Ninja’s Tomonobu Itagaki (Ninja Gaiden, Dead Or Alive, Dead Or Alive Extreme Beach Volleyball) isn’t that put off by Microsoft’s lack of success in his home country.  “First of all, it won’t get any worse than the original Xbox, that’s for sure.  It’s going to take time for Microsoft to win in the truest sense.  So for example in baseball, the major leagues are the major leagues.  It’s the top of the world.  Microsoft has said that the Japanese game market is like the major leagues.  They understand that and the challenges.  Even Microsoft doesn’t believe that they’re going to be able to win in just two generations.  But I recognize and value that they are attempting and taking this challenge in this market, and I want to assist them and help out in any way I can.  I’ve mentioned this in other interviews, but I don’t aim my games at any particular market, like this is for Japan, and this is for America.  The fact that the Xbox hasn’t been successful in Japan, and since I’m Japanese it’s a little disconcerting.  But I’m probably the least worried about that because Microsoft has pledged to continue until they win.  It may not happen in one generation, or two generations, they are going to stay in for the long haul.”

You can slam Itagaki all you want, but he is the one who practically saved Tecmo with the Dead or Alive series. Then he had the vision to move Team Ninja games to Xbox. What platform is Tecmo making the most money on? Team Ninja Xbox games.
 
NWO said:
Isn't it amazing how the DS has outsold EVERY CONSOLE AND HANDHELD for the year in Japan and does so on a weekly basis but it only gets mentioned as "outselling the PSP in Japan" but the PSP didn't even outsell the PS2 for last month's NPD number yet its "steamrolling over everything" in America. :lol :lol :lol

shouldn't you be 'touching' something right now?
 
If those Japanese developers gave that kind of support to Nintendo then they'd have two platforms to make profit from (Revolution & PS3)...the route their going now only suggest that MS paid them to support 360. People say 3RD parties don't support Nintendo 'cos Nintendo gamers don't buy their games...didn't stop MS from getting exclussive Tecmo content (games that got more hype on X-BOX, but probably wouldn't sold better on other systems), or 10 big exclussives from Sega (which would have sold better on GCN & been more appreciated), or more serious support from Koei (they only gave us ONE game...a kiddy version of Dynasty Warriors), Konami (MS at least got a serious MGS, Silent Hill, DDR, Silent Scope, etc., unlike Nintendo), and then examples only get worse as we talk about western publishers. Any good game on GCN get's ported, but nothing get's ported to GCN...even games that would make sense to. Going into next generation, illogically, MS is getting even more support, support that if given to Nintendo would give Nintendo a better chance at Sony than MS could dream of. I'm just hoping the same doesn't happen with Revolution, 'cos it's rediculous.
 
krypt0nian said:
Why does Itagaki even speak anymore?

There was a clear cut winner. Unless you are batshit insane.


Because he is the king. I encourage him to speak more.


And also, Kutaragi is on a roll. More from him too please.
 
---- said:
Yeah relative to where you live, which brings us back to my point. Why do people care how a system is selling in Japan if they don't live there? Japanese companies still have to bring their big games out for Xbox or Genesis or any other system if it's selling well in America and/or Europe.

If a system is the number one in Japan, it probably will get the most support of companies like Square Enix(many of the games from companies like SQ sell about 50% or even more of their WW sales in Japan). At the end this means that the console also sells better in the USA or Europe, which in the end means that it'll get more support from western developers. So please don't tell me that it isn't interesting for us how a system sells in Japan ;)

The numbers posted show that the Asian market is only the 3rd most important market compared to North America and Europe.

It is only the 3rd most important market, but it has many, many big developers(Europe for example is the second most important market, but doesn't have even nearly as much developers as Japan or the USA). And what is even more important: many of the japanese developers develop games EXCLUSIVELY for one plattform(Namco, Square Enix and so on) whereas many western developers develop for all plattforms(for example Electronic Arts or Ubisoft).

People right now are talking up the DS outselling PSP in Japan, I wonder if these people really think that is going to change anything in America where the PSP is steamrolling over everything?

Uh oh, you shouldn't have brought in the DS/PSP thing :D

First of all: PSP isn't steamrolling DS, it hasn't even caught up hardware wise, yet.
The other thing is: if the PSP would outsell the DS in Japan, it would also get most of the japanese support, but if PSP/DS continue to sell that way the DS probably will get most of the japanese support(which of course means that the DS will sell even more in Japan and will also sell more in the western which then means that DS could get more support from western developers etc. ;)
 
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