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The Scope of Gaming Business in Japan: Market and Insights

Game Development
Sep 28, 2024
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Explore Gaming Business in Japan

Have you ever considered what the Japanese market offers to business owners or people looking forward to entering the business domain in the country? In terms of revenue and growth, Land of the Rising Sun, being the third-largest economy in the world, provides wonderful opportunities for newcomers as well as seasoned businessmen entering the market. Whether you want to start a Ramen business or you want to invest in a big project like a gaming business in Japan, the country can offer you a world of infinite possibilities.   

And if your interest peaks in the gaming domain, congratulations! You have chosen the right country. You must be aware of the vast populace of Japan indulging in multiple businesses. it is highly unlikely that you are unaware of the gaming landscape in Japan and its influence on the masses. Moreover, Japanese culture also influences the gaming business in Japan. Conversely, if you are not Japanese, you will be astonished to know that this small East-Asian Island competes with the giants of gaming industries in the West and globally stamping its name on the list of the most vibrant gaming communities in the world.

Scope of Gaming Business in Japan

Now let’s talk about the scope of the gaming business in Japan and the opportunities to grab from the market. Although the game development giants like Sony, and Nintendo have their stronghold on the market, you can build a good business from scratch and generate revenue in billions, considering best-case scenarios. 

For example, if your game is optimized with anime-style combat, incorporates Japanese culture, and is an action RPG genre, it will most likely get all the attention in the country. Hence, starting a gaming business, with certain aspects kept in mind, can be a fruitful thing in Japan.

Market Size

Another reason why starting a gaming business in Japan can be beneficial is its market size. With over 19 billion dollars in revenue in the year 2020, you get one of the biggest market sizes in the world. Trailing China and the US, Japan is the third-largest gaming market in the world, surpassing South Korea and Germany. 

A big chunk of the revenue in Japan is generated from mobile games; smartphones have captured the Japanese audience on a broader scale as compared to consoles or PC. Since the working class of Japan runs on a tight schedule, their best choice for playing video games narrows down to smartphones. Therefore, a mobile game developed in the country has the potential to break the market.

Related: Discover How the Open World Games are Developed

Understanding the Gaming Market in Japan

We already know that billions of dollars are generated through gaming platforms every year in revenue from Japan. The market is heavily inclined toward mobile gaming in Japan followed by console gaming and PC. Therefore, developing a game for mobile phones and making it a cross-platform for consoles as well can generate a humongous revenue.

Apart from Tokyo, the Japanese subcontinent boasts a wide populace of gamers in other cities like Kyoto and Minato as well. Popular features like in-game chats and co-op modes are preferred by the Japanese gaming community as these features tend to bring them closer to each other in the hustle and bustle of the city.

Let’s discuss some of the key similarities found in the popular video games available in the gaming market in Japan.

Action-RPGs

The Japanese indulge more in titles that are based on Action-RPG, a genre of games that provides a real-time combat system, clubbed with an intricate plot. Fun fact, role-playing games that are inspired by Japanese culture are coined as JRPGs, Japanese Role-Playing games.

Lean Towards Mobile Games

People in Japan are more into the habit of playing games on their smartphones. Titles like Fate/Grand Order, Monster Strike, Tokyo Revengers, Final Fantasy Brave Exvius, and Pokemon Go are more common compared to titles that are only developed for PCs or consoles.

Regulations and Laws

Before entering the gaming market in Japan, you must read the local laws and design your game accordingly. For example, A-rated games are restricted for younger audiences and would have to include or exclude elements from your game keeping regulatory laws and your target audience in mind.  

Related: Importance of sound design in games

Incorporation of Culture in Video Games

Japanese take pride in their culture, and they appreciate games that are intertwined with their culture. Their fondness for anime is reflected in the games they love to play. For example, titles like Sword Art Online, Genshin Impact, and Naruto: Ultimate Ninja are some of the titles famous in the Japanese market. 

Certain video titles like Okami and The Legend of Zelda are designed to resonate with the local audience which in turn amplifies the gaming experience of the crowd, providing them with more immersive gameplay mechanics and optimization. 

Game Characters and Aesthetics

Japan has a very unique art form, which is often reflected in their video games. Game characters are developed by drawing inspiration from world-famous art styles: Anime and Manga. Players tend to relate more to the creativity displayed in the game while designing characters for online games.

Based on Mythology and Traditional Themes

Traditional themes and Folklore have a great impact on the Japanese crowd. Titles often incorporate these themes in their gameplay mechanics. In Japan, rivers, mountains, and nature in general are very respected and placed alongside god. For example, the title Okami incorporates Kami, Japanese gods or natural phenomena, in its world.

Use of Gacha Mechanics

Gachapon, a small toy vending machine, is very common in Japan. Game developers got inspired by Gachapon and started to amalgamate it in video games naming it as Gacha mechanics. Through Gacha mechanics you can collect characters, random rewards, and other things depending upon which game you are playing.

Related: Know Everything about Black Myth: Wukong

Which Platform Attracts the Most Audience? Mobile Games, Consoles, or PCs

The audience engaging in Mobile games easily dominates the console and PC players by miles. There are a number of reasons for over 50 million people engaging in mobile games, few of the reasons are mentioned below:

  • Mobile Games are Popular
  • Easily Accessible 
  • Huge Library of Games

The use of mobiles in Japan’s gaming scenario is highly prevalent, although world-famous gaming consoles like PlayStation and Nintendo Switch are developed in Japan. Players adopting consoles range between 20 to 30 million in the country followed by PC users ranging in 15 to 20 million.

Games Preferred by Audience

There are many mobile games popular in Japan, however, certain games like Mahjong and Super Mario play a significant role in Japan.

Nintendo’s launch of Super Mario Bros in 1985 helped the company acquire a place in the gaming industry. It is recognized as Japan’s one of the oldest characters which is relevant to this date, and there are still millions of players who enjoy this game to this date.

Related: What is the difference b/w Raster and Vector Graphics

Marketing can Take Your Game to Heights

The story does not end with developing a game; if you want your game to have an impact on the market, try certain means of marketing that are proven to do wonders in boosting a game.

The very step in making your game visible on the internet is building a strong community that interacts with each other and talks about the game. Discord and Facebook can be your go-to sites to build a strong community. 

Next in line is contacting regional game influencers who stream on YouTube so that they can help in sharing the gameplay with their subscribers, eventually boosting the game’s engagement.

Organizing social media campaigns and e-sport competitions to bring in big players and make them compete for a better reach of the game.

Conclusion

We have learned that entering the online gaming business in Japan can be a great decision for entrepreneurs if they play their cards right. Being the third largest gaming community in the world, developing and marketing an online mobile game in Japan is fairly easy compared to other countries. 

BR Softech can be a huge helping hand to do this, with 12+ years of experience in gaming industry our team not only helps you in game development but also strategizes a marketing plan for your game. To get better insights you can contact us.

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FAQs (Frequently-asked Questions)

Why is Japan a better country for initiating a gaming business?

Being the 3rd-largest gaming market in the world, Japan offers multiple opportunities in the gaming domain. Hence, it is one of the best countries in the world to commence a gaming business. BR Softech can help you get better insights

How big is the gaming market in Japan?

The gaming market in Japan touches the mark of more than 20 billion dollars every year. With around 100 million players in the country, the gaming audience is very vast in Japan.

What genre of games are popular in Japan?

Players in Japan prefer action-RPG games, depicting anime-style graphics combined with rich storylines. Games like Dark Souls, Final Fantasy, and Genshin Impact are some of the major RPGs popular in Japan.

What platform is preferred in Japan?

Japanese prefer mobile games over every other platform, be it consoles or PCs. Japan boasts a total of around 50 million mobile game players, followed by approximately 25 million console players and 15 million PC users.

What are Gacha mechanics in online video games?

Gacha mechanics is a method of collecting rewards from games, which is inspired by Gachapon, a small toy-vending machine.




Nitin Garg

I am Nitin Garg, founder of BR Softech PVT LTD - an award-winning mobile game development company known for its excellence in the gaming domain. We have a team of 180+ exceptional professionals & we have a satisfied clientele of 2.7k+ globally. Driven by an entrepreneurial spirit, I aim to elevate BR Softech to a billion-dollar company.

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