How Can You Make Your Gaming Business Profitable in Japan?

The Japanese gaming market boasts the incorporation of history and culture in its games. And it is one of the reasons why it outshines every other part of the world. The country’s lucrative gaming community is a product of its amazing gaming history. The gaming audience in Japan ranges from teenagers to adults; everyone has something in store for themselves. 

If you are a player in Japan, it is a wonderland, as you can experience many out-of-this-world titles. However, curating a game is more than the development process and optimizing it for multiple devices. If you want a game that performs in Japan, it requires an understanding of the deep-rooted culture and preferences of gamers. If you do a thorough market analysis and club cultural references, your game is going to be a hit. 

Key Takeaways:

• We will learn about the intricacies of the Japanese Gaming Market.
• We will talk about the popular genres in gaming in Japan.
• Delve deep into the cultural factors influencing gaming market in Japan.
• How does the Japanese tackle game development process differently?
• Lastly, the monetization strategies perfect for the people of Japan.

How Do You Analyse the Japanese Gaming Market?

Japan is a relatively small island; despite that, it boasts one of the largest gaming markets in the world. It ranks third after the USA and China in terms of popularity and the gaming market. It is also known for its innovative games throughout history, the biggest of them being Mario Brothers Inc., continuing to remain popular and widely played by millions of gamers around the world.

• The country is home to iconic studios like Nintendo, Sony, and Square Enix
• Nintendo Switch and PlayStation are top-selling consoles around the world
• Gaming culture extends beyond consoles to mobile games.
• In 2020, the Japanese video game market was valued at 1.66 trillion Yen.
• It is projected to exceed 1.9 trillion Yen by 2027.
• The majority of revenue is generated by mobile games in Japan.
• The country also promises a massive growth potential

A big chunk of revenue comes from mobile games in Japan, making it essential to understand the type of games that are popular in the country. Therefore, in the next section, this blog shall enlighten you on the different popular games that are trending in Japan.

Also Read The Scope of Gaming Business in Japan: Market and Insights

What Types of Games Are Popular in Japan?

Japan’s gaming audience does not share its interests with the Western world, they are very specific in this regard. They have a very niche genre and do not entertain anything and everything circulating in the market. 

For example, there’s an underground culture in Japan revolving around cars and drifting, and there’s a pop-culture reference in Fast and Furious: Tokyo Drift, hence, a game around this has the potential to succeed because it resonates with the audience.

Role-playing Games

The very first thing that comes to mind when we talk about popular genres in Japan is RPG. Role-playing games are the most loved and most successful in the Japanese gaming market. Final Fantasy, Dragon Quest, and Persona are still relevant because of their RPG gaming style.

• The RPG genre is the most successful in Japan
• Some RPG titles include Final Fantasy, Dragon Quest, and Persona
• They have invented a separate genre – JRPG (Japanese Role-Playing Games)

Gacha Games

Japanese take great pride in their culture, and one of the cultural aspects is Gachapon, which they are fond of. Gachapons are incorporated into multiple online games. This culture has influenced the gaming industry on such a level that a whole new genre called ‘Gacha Games’ was born out of it. Gacha games have a mechanic through which players buy in-game assets, similar to Gachapon (a slot-like machine) in Japan.

• Gachapon are small toy machines famous in the country.
• Japanese consider it a part of their culture.
• Games using gacha mechanics are turned into a whole new genre.

Puzzle Games

A vast audience in Japan relies on puzzle games to challenge their mental abilities. These games are easy to play and require skills to complete levels.

• Titles like Sudoku, Shogi, Shikaku, etc, are famous.
• Japanese like to solve puzzles
• Skillful games are popular among teenagers and adults

Action and Adventure Games

Games involving action attract young male audiences in Japan. These games are mostly played by gamers who have access to consoles or PCs. Mobile gamers also love action-adventure, and games like Genshin Impact are a big hit among mobile gamers in the country.

• Mobile games following this genre tend to become a big hit
• The young male audience is attracted to this genre.
• Mostly played on consoles and PCs.

What are the Cultural Factors Influencing the Japanese Gaming Market?

We know that culture plays a significant role in shaping the online gaming market of Japan. This part of the blog will share evidence on that statement. We will explore in depth all the factors that make a game successful because of its correlation with Japanese culture.

Gaming on the Go

Japan’s fast-paced lifestyle, especially in areas like Tokyo and Kyoto, encourages players to play games on the go. These areas are densely populated and experience rush hours almost all the time during the day. Stuck in a fast-paced lifestyle, gaming on smartphones is the only accessible option. Therefore, developing a mobile game can be a good choice over developing games for PCs or consoles.

Character-driven Narratives

A big part of the Japanese population tries to relate to the storyline of the game. If they find it relatable and the character amazing, they tend to get drawn towards the game. Hence, making a game with a dope character amplifies the chances of the game getting the right boost.

Attention to detail

Japanese tend to love aesthetically pleasing things. If your game has a good art design and the best game mechanics with visually pleasing action sequences, it is bound to make a mark on the Japanese gaming community. 

What are the Pros and Cons of Starting a Gaming Business in Japan?

The gaming business in Japan surely gives you a lot of opportunities to thrive, but at the same time, you face unprecedented challenges that are hard to tackle. Initially, we will pay heed to the pros of starting an online gaming business in Japan, and then we will jump to the cons of the same.

Pros

The strong presence of smartphones help you have an identified user base where you can easily sell your product and gain profits. Almost all of the working class indulges in gaming and considers it as a part of their lifestyle. This already-established gaming culture helps in marketing your product to the masses. 

• Smartphone penetration is very high in Japan
• Japan has a tech-savvy audience, people are accustomed to new tech
• Gaming is considered a part of lifestyle

Cons

So the primary con is the highly saturated gaming market of Japan due to intense competition. The neck-and-neck competition requires you to stay ahead of the curve when developing a game. There’s a lot of demand for localization, it is a mandate for your game to be successful. Lastly, you might have to face some local laws to integrate revenue streams into your game.

• Japan produces a lot games, increasing competition
• Your game idea should not seem copied
• Your content should be localized
• Look out for monetization regulations

Pros	Cons
High smartphone penetration offers a well-defined user base for product reach and profitability.	Highly saturated market makes it difficult to stand out amid intense competition.
Tech-savvy audience, especially among the working class, who consider gaming a part of daily life.	Strong demand for localization — content must be tailored to Japanese culture and preferences.
Established gaming culture makes it easier to market and promote games to a receptive audience.	Regulatory challenges may arise when monetizing your game due to local laws and policies.

Is the Game Development Process Different in Japan Compared to Other Regions?

Yes, the game development process in Japan is quite different in terms of strategy. It is not streamlined, instead, it is an amalgamation of collaboration, creativity, and attention towards minuscule stuff. 

Collaborations

In Japan, people prefer to work in groups and give emphasis on teamwork rather than opting for indie developers. The creativity is shared among developers, and collaborative efforts are appreciated.

Iterative Development

Native developers focus on paying attention to each and every aspect of the game. They tend to go through multiple steps of refining before deploying the game.

Character and Story-Driven Development

The approach towards game development goes through character development. A lot of resources are spent on building the characters and story of the game, as it matters the most to the Japanese. If the story is not intricate and fails to resonate with the audience, the game’s success is bleak. 

Localization Expertise

You must include local expertise in your game development process, to get more insights on how to inculcate cultural elements in your game. 

To know the full game development process look at this blog: A Complete Guide For Game Development Process

Is it Necessary to Create Marketing Strategy and Build Hype Around the Game?

Absolutely, a good marketing strategy and building hype before the lauch can do wonders for your game. A strategically advanced marketing strategy is a must before deploying a game. You can do this in multiple ways, and we shall discuss this in this part of the blog.

• Host Gacha-style events to attract attention and encourage user participationmasses.
• Organize pre-release events such as trailer launches and beta testing
• Showcase your game at the Tokyo Game Show, a major gaming expo in Tokyo
• Collaborate with streamers and YouTubers to reach a broader audience
• Boost visibility through active social media engagement

To get a hold of how you can promote your gaming business in Japan you can refer to this Blog: How to Promote Mobile Game App

What Monetization Strategies Work Best in Japan?

In-game purchases in freemium models is the best monetization technique in Japan. People in Japan do not prefer making a purchase from the Apple Store or Play Store. However, they can spend on in-game assets if it gets their attention.

Now, the top ways to get the attention of the Japanese is by using methods like the Gacha System, subscription models, and time-limited events only accessed through monetization. These techniques can help you manage your game along with getting high returns.

• Freemium models with in-game purchases
• Gacha mechanics is one of the best ways
• Provide subscription options
• Give time-limited access to events

Wrapping Up

Although Japan’s gaming market comes with a lot of challenges, it also provides a haven for developers and games you play and enjoy mobile games more than consoles and PCs. You must understand local preferences, before developing a game, it is one of the most prominent things to tackle.

Also, you can become successful by applying the correct user retention strategies and finding a way through legal regulations. Once these things are sorted your game will take up the flight it deserves. 

In the process of growing a Gaming Business in Japan, you can rely on the experience and expertise of BR Softech. With over 13 years of experience in this industry, the agency provides state-of-the-art development solutions.

FAQs (Frequently-asked Questions)