Japan • JP Gaming •

Gaming Market (Japan)

JP Gaming

Population: 126 476 461 (Worldometers)

Average Age: 48.4 (Worldometers)

GDP: $5 Billion (World Bank) – 2019

Official language: Japanese

The Japanese gaming market was one of the world’s first gaming markets and is currently the third largest, after China and the US. Japan is a country with highly advanced technology, and it’s also the birthplace of brands such as Nintendo, Sony PlayStation, and Sega. Because of these factors, Japan has always been a significant contributor to the development of the gaming industry. In Japan, gaming is more than just a part of the economy — it’s part of the culture. As a result, Japanese people dedicate a lot of time to games (an average of 6.7 hours per week for mobile games) and are willing to spend more money on them, as evidenced by the high ARPU of $177. However, the user acquisition cost in Japan is one of the highest in the world.

The release of the Nintendo Switch console in 2017 (which is one of the best-selling consoles in history) and the PlayStation 5 in 2020 has also influenced the industry. The monumental launch of 5G networks in March 2020 will boost Japan’s gaming market too, including the cloud gaming market.

As for eSports, which play a smaller role, they have seen a 27% growth over the past year. However, this is likely to change in the coming years with the help of the Japanese government. The Ministry of Economy, Trade, and Industry has ambitious plans to expand the Japanese eSports industry by supporting companies and experts who are developing major tournaments (esportsobserver.com, KADOKAWA Game Linkage research).

The most up-to-date information on Japanese gamers:

  • Japanese people spend a lot of time playing games: on average 6.7 hours per week on mobile games (App Annie).

  • Women are very avid gamers: 54% of female gamers play five or more times per week, while only 44% of men do so (Newzoo).

  • In Japan, the percentage of mobile gamers who pay for games is high, as is the percentage of mobile gamers who continue playing after the first week. This guarantees the acquisition of users with good paying capacity ($371 per year).

What should perhaps be considered when entering the Japanese market is the aging of the population (29% of the population is over 65).

Popular game genres:

1. JRPG (JapanRPG: Dragon Quest, Final Fantasy) deserves its own genre
2. RPG
3. Action
4. Adventure
5. Fighting

For mobile games:

1. Battle Royale
2. RPG
3. Action
4. Adventure
5. Puzzle

The list of Japanese developers includes world-renowned companies, several of which were founded as far back as the 70s and 80s:

  • Sony Interactive Entertainment

  • Nintendo

  • Capcom

  • Bandai Namco

  • Square Enix

From the smaller names in the market, it’s worth noting the following:

  • GungHo Online Entertainment (Puzzle&Dragons)

  • Altus (Persona 5)

  • FromSoftware (Demon’s Souls, Dark Souls, Bloodborne, Sekiro)

  • Monolith Soft (Dragon Ball Z: Attack of the Saiyans)

  • LINE Corporation (many casual games in the LINE Games series)

  • Geisha Tokyo, Inc. (casual projects)

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