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[Thick Thighs Save Lives]

Individuals from Japan’s game industry propose that we may soon be seeing new console games released by ex-mobile game companies. At the same time, others have suggested that both console game and mobile game markets are struggling in the face of PC games’ growing popularity. Such opinions were recently exchanged among Japanese game developers on X (formerly Twitter), giving some interesting insights into the current state of game companies.

Post translation: I wonder how the industry is doing at the moment. I keep hearing that mobile/gacha games are struggling, but I don’t see console games doing that well either, and while PC games tend to go viral, it’s mostly the cheap/free ones (Palworld: $30, The Exit 8: $4). I feel like higher-priced products don’t sell anymore, or rather, people can’t secure the money for their hobbies.
The discussion was prompted when game designer Yuo made observations about the apparent decline of both mobile and console games, noting that titles with high price tags are becoming a less feasible as an option for consumers due to financial circumstances. In response, game developer/Unity Engineer Taishi Yamada offered a series of insights gathered from various Japanese game companies. He notes that mobile game companies are currently attempting to recover from the ongoing decline of the mobile game market, and that some of their efforts include switching over to console game development or even establishing in-house indie labels.

The discussion was prompted when game designer Yuo made observations about the apparent decline of both mobile and console games, noting that titles with high price tags are becoming a less feasible as an option for consumers due to financial circumstances. In response, game developer/Unity Engineer Taishi Yamada offered a series of insights gathered from various Japanese game companies. He notes that mobile game companies are currently attempting to recover from the ongoing decline of the mobile game market, and that some of their efforts include switching over to console game development or even establishing in-house indie labels.

Post translation: I’ll give my answer as someone who spoke to a lot of companies in the video game industry while looking to switch jobs last year. First, mobile/gacha games are in decline. Every company is aware of this, and they are in the midst of trying to recover through corporate efforts. On the other hand, a significant number of gacha game companies have started diverting their efforts to console games. Although this is one year old information, there is an increasing tendency for them to launch console game projects. As console games take upwards of 3 years to release on average, perhaps we can expect some of these games to appear starting next year. Also, there are game companies that are looking to dabble in VR.

Post translation: As for The Exit 8 and Palworld, these are indie games so it’s kind of a different story. However, there seem to be companies trying to launch in-house indie labels, although they do not know if they can expect a profit from it yet. I get the impression that many companies are looking for new approaches and forms of revenue, while surviving for the time being with remakes of past titles. This is why we see companies dabbling in things like Roblox and NFT technology.

Yamada suggests that a number of Japanese video game companies are currently in “survival” mode, with remakes of existing IPs helping them stay afloat while they experiment to find their next major source of revenue. Although he mentions game companies showing interest in indie games, Yamada also states that (regardless of platform) these companies tend to be aiming towards large-scale development. Interestingly, Takuro Mizobe, CEO of Palworld’s developer PocketPair, recently commented that he wishes to keep the scale of his company and future games relatively small, with no intention of entering the triple-A market.

The X discourse was joined by Indie-us Games representative Alwei, who offered a more nuanced stance on mobile games and emphasized the growing impact of Steam on Japan’s video game market.

Post translation: I have many thoughts on this topic but, while we can’t expect mobile games to grow by leaps and bounds anymore, the stable ones will continue to be stable for a long time. We will be seeing fewer new titles though. At the same time, console games cannot be expected to grow as much as they did in the past, and PC games seem to be experiencing the biggest growth. Steam and GamePass keep getting stronger, and global users keep increasing.

In a subsequent post, Alwei illustrates the dominance of PC games with the example of Capcom, who reported that approximately 50% of their video game sales in the second quarter of FY 2023 consisted of PC titles. Incidentally, Capcom was also one of the few major Japanese video game companies to report a year-on-year increase in profit in their video game sector in 2023, with other giants like Square Enix, Koei Tecmo and Bandai reporting significant declines in profit in the past year. Of course, Capcom is a multi-platform company with significant sales figures in console games, but they had made a conscious decision to increase their focus on PC releases back in 2021 (Source: Nikkei Shimbun).

Japan’s video game market is being impacted by several factors – including a drop in demand following the Covid lockdowns and the extreme depreciation of the yen. With consumer behavior and interests shifting, developers seem to be taking various measures to stay on top, the results of which we may see in the near future.

Are Japan’s console and mobile game markets shrinking in favor of PC games? Developers discuss - AUTOMATON WEST

Japanese developers offer their views on the state of Japan's video game industry, including the decline of the mobile and console markets.

automaton-media.com

 

[HerjansEagleFeeder]

How is that consistent with the alleged record sales numbers for the Switch? Is PC even bigger in Japan, or are Japanese Switch owners not buying any games for it?

 

[Guilty_AI]

Now that they mentioned this, we are seeing a bunch of mobile game devs shifting towards PC and Console.

 

[lh032]

i guess time will tell, mobile games will always be the large market in Japan imo.

I think game prices is one of the factors here.

"while PC games tend to go viral, it’s mostly the cheap/free ones (Palworld: $30, The Exit 8: $4). I feel like higher-priced products don’t sell anymore, or rather, people can’t secure the money for their hobbies."

 

[Unknown?]

This article doesn't really have any data and seems to just be assumptions unless I'm missing something.

If people are having a hard time affording their hobby, I doubt they will go out and buy an expensive PC that's bulky as heck.

 

[Guilty_AI]

If people are having a hard time affording their hobby, I doubt they will go out and buy an expensive PC that's bulky as heck.

Thing is you don't really need an expensive PC to play games. Add the fact many people already need PCs for other necessities anyway and it ends up being the cheapest gaming option available.

 

[Angry_Megalodon]

Space is an issue in Japan so the clear answer is no. Many mobile games earn more money in the Japan server alone than in the others combined.

 

[Schmendrick]

expensive PC that's bulky as heck.

You have no idea what you are talking about.....

You can build console sized PCs which still heavily outperform consoles and since PCs are completely customizable you decide how much performance you want to purchase......

 

[Unknown?]

You have no idea what you are talking about.....

You can build console sized PCs which still heavily outperform consoles and since PCs are completely customizable you decide how much performance you want to purchase......

Yeah and consoles aren't popular there anymore either.

Performance clearly isn't a selling factor there either.

 

[SmokedMeat]

Mobile and Gatcha on a decline? That’s fantastic news!

PC is growing in Japan, but Nintendo will be fine.

 

[Dane]

Too many developers trying to get their gacha as the next big thing in mobile with many attempts, the last two-three years has been a bloodbath with many shutdowns of short to mid lasting games. Even some veterans like Love Live are dead.

 

[Woopah]

Seems like "survive 2024" isn't just the mantra for Western developers, but for Japanese ones too. Switch 2 and GTA VI should give the market a much needed boost.

How is that consistent with the alleged record sales numbers for the Switch? Is PC even bigger in Japan, or are Japanese Switch owners not buying any games for it?

Switch has sold more in Japan than any other console, but its in its eighth year and in the decline phase. So its very likely its growth % is lower than the growth % of PC.

 

[Interfectum]

an expensive PC that's bulky as heck.

My 4080 Gaming PC is smaller than my PS5.

 

[Saber]

You have no idea what you are talking about.....

You can build console sized PCs which still heavily outperform consoles and since PCs are completely customizable you decide how much performance you want to purchase......

Consoles are already build(no set ups, just buy the box), already have size in mind(you know beforehand the size) and its just turn on and play. This ridiculous notion from the PC player base that PC comes as an easy set up is incredibly disingenuous.

 

[Guilty_AI]

Consoles are already build(no set ups, just buy the box), already have size in mind(you know beforehand the size) and its just turn on and play. This ridiculous notion from the PC player base that PC comes as an easy set up is incredibly disingenuous.

 

[Magic Carpet]

My 4080 Gaming PC is smaller than my PS5.

My 4070 Gaming PC is shorter than the PS5 but a tiny bit fatter.

 

[Schmendrick]

Consoles are already build(no set ups, just buy the box), already have size in mind(you know beforehand the size) and its just turn on and play. This ridiculous notion from the PC player base that PC comes as an easy set up is incredibly disingenuous.

did anyone claim that PCs are generally plug and play out of the box (albeit prebuilts actually can be)? Because if you are disputing that then someone must`ve proclaimed it first, right?

 

[FalconPunch]

My 4080 Gaming PC is smaller than my PS5.

Somehow some way, on the balance of probabilities, this is a likely a lie. I suppose you could be using a mini itx setup and have a custom loop on top of that…. However, due to the power requirements and cooling requirements, of a 4080, it’s again likely a lie. I speak as someone who owns a 4090 de and tried to do a compact build. Which case are you fitting a 4080 into that’s smaller in volume than a ps5 and what are your other components.

The only way I can envision this is it’s a laptop 4080 variant which is 20% slower than a 4070ti desktop. So it’s around Rtx 3080/4070 levels.

 

[Interfectum]

Somehow some way, on the balance of probabilities, this is a likely a lie. I suppose you could be using a mini itx setup and have a custom loop on top of that…. However, due to the power requirements and cooling requirements, of a 4080, it’s again likely a lie. I speak as someone who owns a 4090 de and tried to do a compact build. Which case are you fitting a 4080 into that’s smaller in volume than a ps5 and what are your other components.

The only way I can envision this is it’s a laptop 4080 variant which is 20% slower than a 4070ti desktop. So it’s around Rtx 3080/4070 levels.

I use the Fractal Terra and I'll give you the win here but it's very close:

The volume of the Fractal Terra is approximately 11,440.42 cm³, and the volume of the PS5 is approximately 10,551.57 cm³.

 

[Fake]

Short answer? No.

 

[FalconPunch]

I use the Fractal Terra and I'll give you the win here but it's very close:

The volume of the Fractal Terra is approximately 11,440.42 cm³, and the volume of the PS5 is approximately 10,551.57 cm³.

The slim is even 7.4L as well. I was interested in the terra but the acoustics and cooling are quite poor according to GN. Still looking for a good SFF case for the 4090FE. How do you fit a 4080 into that case, GN was struggling to do so and it wouldn't close due to the power cable.?

 

[DonkeyPunchJr]

How well is Steam Deck doing in Japan? Seems like there’s a huge potential for that type of device. PC gaming + handheld form factor + getting pretty close to consoles in the “it just works” factor.

 

[Interfectum]

The slim is even 7.4L as well. I was interested in the terra but the acoustics and cooling are quite poor according to GN. Still looking for a good SFF case for the 4090FE. How do you fit a 4080 into that case, GN was struggling to do so and it wouldn't close due to the power cable.?

ProArt 4080 fits, and low profile CPU cooler. Cooling and acoustics seem fine to me. I'm running games like Cyberpunk, Helldivers 2, etc with most things cranked to max with no issues.

 

[FalconPunch]

ProArt 4080 fits, and low profile CPU cooler. Cooling and acoustics seem fine to me. I'm running games like Cyberpunk, Helldivers 2, etc with most things cranked to max with no issues.

Wow, it fits nicely

 

[Party McHardy]

ProArt 4080 fits, and low profile CPU cooler. Cooling and acoustics seem fine to me. I'm running games like Cyberpunk, Helldivers 2, etc with most things cranked to max with no issues.

Is only the bottom image your pc? That’s wild. If it’s the top image also, I’m not impressed.

 

[Guilty_AI]

How well is Steam Deck doing in Japan? Seems like there’s a huge potential for that type of device. PC gaming + handheld form factor + getting pretty close to consoles in the “it just works” factor.

The OLED version sold out there when it came out, or so i read.

 

[justiceiro]

So a flood of portable PC made PC games popular on a mobile centric market, who could have thought.

 

[Woopah]

I do think the Japanese console market could contract quite a bit this year if more games aren't announced soon. The lineup is looking very empy after this quarter.

 

[StereoVsn]

My 4080 Gaming PC is smaller than my PS5.

Yep, and you can also get a gaming laptop and that doesn’t have to have a 4080 or be huge.

Plus you can use PC for all kinds of other tasks, not just gaming.

 

[Go_Ly_Dow]

My armchair analysis for Japan

PC: seems like it's grown a lot over the past 10 years but there's no hard data to say how much
Xbox: dead as ever and will stay that way
Nintendo: booming and hoovering the market share, Switch 2 will be a monster
Playstation: PS3/PS4 were stagnant but there was some life with softw, PS5 hardware sales wise not bad but software for all franchises there's a clear drop if you look at the top 10 best selling games. FF, Resi, Tekken, Yakuza and much more. So it's clearly in decline, but still big enough for now to give a damn basically.

Gamer habits have also changed a lot since mobile game in Japan. Even if mobile gaming isn't the threat we thought it would be it's changed how and what people play now.

 

[Holammer]

One of the more interesting bits was the mention of the PCs trending potential.
Been thinking a lot about it myself, recently we saw it with Palworld and I reckon Helldivers 2 would never have exploded memetically without a PC version (Top Selling Globally for 5 weeks on Steam). Sony clearly tried to tap into this viral potential with the share button on the PS4 controller.

What are all the constituent parts behind this? Smart people ought to research it. Valve's liberal sharing of interesting data on Steam might be one factor fueling trending algorithms on social networks and search engines.
Have a drink every time you see a thread, tweet or a headline about a game having X amount of concurrent players on Steam, you will die.

How is that consistent with the alleged record sales numbers for the Switch? Is PC even bigger in Japan, or are Japanese Switch owners not buying any games for it?

From a third party developer perspective Switch might not be that hot because users prefer to spend their money on Nintendo's first party titles.

 

[midnightAI]

I totally agree, thats why the Switch is a massive failure with its low sales.

 

[rodrigolfp]

This ridiculous notion from the PC player base that PC comes as an easy set up is incredibly disingenuous.

Who says that? And why should we care that is not an as easy set up? Being as easy would mean having almost no option and freedom that PC gives, and it's stuff like these that people want with a PC.

 

[Saber]

Who says that? And why should we care that is not an as easy set up? Being as easy would mean having almost no option and freedom that PC gives, and it's stuff like these that people want with a PC.

For thread discussion purposes, I would say Japan. They tend to look at those aspects when gaming, the facility of simply buying a console is more believable, even when taken into account that they probably have PC in their houses. But I would guess those are mostly work focused. One of reasons Switch is overly popular, though PS5 is just as popular too.
I don't think they are fond of these samey arguments about PC, specially when Switch is more about flexibility than freedom since its the only home of Nintendo titles, something PC fanbase tireless begs them to go to no avail(Yuzu is a clear case that they don't want to go that route).

 

[rodrigolfp]

I would say Japan.

Then why is it growing?

And in what dimension there is freedom on Switch? Maybe a very little taste on a hacked one.

 

[Saber]

Then why is it growing?

The thread is about assumptions, he doesn't have any numbers or data, just suggest things.

 

[rodrigolfp]

The thread is about assumptions, he doesn't have any numbers or data, just suggest things.

(Tokyo Game Show) Valve, Capcom, Bandai Namco discuss growth of Japan PC gaming (PC position now on par with console & smartphone)

https://s.famitsu.com/news/202309/22317954.html Google translated. Summary; console & physical still strong but PC and digital has largely caught up. Steam sales is important for uncovering hidden gem and sales of old titles Japan = one of fastest growing markets in the world in past 5 years...

www.neogaf.com

Sales-Age - Japan: Console hardware and software continue growth, PC market makes quite a leap, mobile revenue drops

Game industry data provider KADOKAWA ASCII Research Laboratories just published a new set of numbers on the state of the Japanese market. According to the company, the overall gaming market in Japan grew 1.4% year-on-year to 2.03 trillion yen in 2022 – which currently converts to US$13.9...

www.neogaf.com

Japan's PC gaming market doubles in size in 3 years

https://www.serkantoto.com/2022/11/06/japan-pc-gaming-market/ Good analyze I must say. KADOKAWA ASCII also says there were 16 million PC game users in Japan in 2021 – among a total gamer base of 55.4 million people (Japan’s population was around 126 million last year). Here, too, a...

www.neogaf.com

(Valve), Japan has probably the biggest growth rate for PC gaming right now, Steam Deck preorder exceed expectation in Jpn

https://automaton-media.com/articles/interviewsjp/20220926-220505/ Got some personal observations: It is a physical-game dominance country, while PC is mostly a digital-only market. Perhaps the Japanese is starting to embrace digital more People often claim Xbox is not a Japanese product hence...

www.neogaf.com

 

[Saber]

(Tokyo Game Show) Valve, Capcom, Bandai Namco discuss growth of Japan PC gaming (PC position now on par with console & smartphone)

https://s.famitsu.com/news/202309/22317954.html Google translated. Summary; console & physical still strong but PC and digital has largely caught up. Steam sales is important for uncovering hidden gem and sales of old titles Japan = one of fastest growing markets in the world in past 5 years...

www.neogaf.com

Sales-Age - Japan: Console hardware and software continue growth, PC market makes quite a leap, mobile revenue drops

Game industry data provider KADOKAWA ASCII Research Laboratories just published a new set of numbers on the state of the Japanese market. According to the company, the overall gaming market in Japan grew 1.4% year-on-year to 2.03 trillion yen in 2022 – which currently converts to US$13.9...

www.neogaf.com

Japan's PC gaming market doubles in size in 3 years

https://www.serkantoto.com/2022/11/06/japan-pc-gaming-market/ Good analyze I must say. KADOKAWA ASCII also says there were 16 million PC game users in Japan in 2021 – among a total gamer base of 55.4 million people (Japan’s population was around 126 million last year). Here, too, a...

www.neogaf.com

(Valve), Japan has probably the biggest growth rate for PC gaming right now, Steam Deck preorder exceed expectation in Jpn

https://automaton-media.com/articles/interviewsjp/20220926-220505/ Got some personal observations: It is a physical-game dominance country, while PC is mostly a digital-only market. Perhaps the Japanese is starting to embrace digital more People often claim Xbox is not a Japanese product hence...

www.neogaf.com

I'm talking about him not bringing up any data to support his point, sincerelly dunno whats wrong with you(I guess is one of those gotchas?). If this was of somehow of relevance to his point, Yamada would be bringing this data easly.

 

[rodrigolfp]

I'm talking about him not bringing up any data to support his point, sincerelly dunno whats wrong with you(I guess is one of those gotchas?). If this was of somehow of relevance to his point, Yamada would be bringing this data easly.

In the first paragraph in OP:

"At the same time, others have suggested that both console game and mobile game markets are struggling in the face of PC games’ growing popularity. Such opinions were recently exchanged among Japanese game developers on X (formerly Twitter), giving some interesting insights into the current state of game companies."

 

[Randall365]

Everyone kept saying the Steam Deck was their jrpg machine when it came out - perhaps the Japanese cottoned on to this too?