
This industry really has changed, hasn't it? It's no secret that the big Japanese publishers — Capcom, SEGA, Square Enix, etc. — are largely looking to the West these days, as their home nation seems to distance itself more and more from traditional console gaming (well, outside of Nintendo, at least). Whether it's enforcing global release dates or going all-in on Western marketing, the change in approach has been dramatic over the last half a decade or so.
And it's Square Enix that paints a clear picture of this new direction. In the company's annual overview for 2022, president Yosuke Matsuda goes out of his way to stress the importance of appealing to a global market.
"Achieving major growth in the game industry is difficult now for companies that compete primarily in the Japanese market, given its graying demographics," he writes. "As such, it is critical for our business that we produce hit titles that speak to the global market, which offers greater scale in terms of both customers and sales volumes."
Matsuda goes on to state that a reliance on the Japanese market simply isn't feasible, given the size and scope of modern, big budget game development: "the Japanese market is no longer sufficient for achieving a level of earnings that enables us to recoup our development investment and generate a profit, and we therefore need to approach our development efforts based on the assumption that we have to succeed in the global market."
As alluded in our recent article on Persona series sales data, it's still strange to see Japanese publishers chasing Western markets after so many generations of prioritising their homeland. We grew up waiting weeks, months, sometimes even years for select Japanese games to make it overseas — but it would appear that we're well past that point now, especially when it comes to larger publishers.
[source hd.square-enix.com]
Comments 76
Square Enix agreeing to keep FF7 Remake PlayStation only doesn't help. They would of made way more money by allowing it on Xbox as well, even better if it went onto Game Pass as Microsoft would obviously pay Square Enix money for it.
@Snake_V5
They would have made more money but way more? Nah. Xbox players don't really buy JRPGs.
Guess my last comment is better suited for this topic instead:
Problem is that most gamers, even the hardcore gamers, don't seem to want to support most Japanese Games, not willing to branch out and try something new, thus purposely miss out some truly great games like Persona, Danganronpa, Ace Attorney, Zero Escape, AI the Somnium Files, Kingdom Hearts, Dragon Quest, Ni No Kuni, Final Fantasy, Ys, Trails of Cold Steel, Chrono Trigger, Tales of, etc.
Gamers really need to branch out and have more variety in the games they play, instead of funneling themselves into a select few categories and limiting themselves to what's familiar and safe.
Also the dumba$$ notion that 'Anime' Games are for losers & virgins doesn't help either, the fact that there are morons that genuinely believe AND say this is utterly pathetic, and another reason why the gene pool needs a lifeguard.
This has been the case for over a decade now. Most JRPGs sell better outside of Japan. Only exception is Dragon Quest.
If only there was an indie games market that was supported by the platform holder in Japan. It wouldn’t stop the larger players from wanting larger growth than the country can support of course, but it might do what it did 30 years ago, and foster a love for Japanese game output so these games didn’t have to change so much to appeal to “the west”.
@JustPlainLoco
“ Problem is that most gamers, even the hardcore gamers, don't seem to want to support most Japanese Games”
I would argue that we don’t have Japanese games anymore, what made them unique has been deemed problematic by the platform holders (all 3 of them now unfortunately) and they are chasing Western sensibilities instead.
Whilst I don't disagree that Square Enix shouldn't just focus on the Japanese market, I still have concerns about the direction they are intending to go...
President Yosuke Matsuda further added that he believes "blockchain entertainment" will "play a key part of [SE's] strategy for future growth", adding that the company had "identified AI, the cloud, and blockchain as focus investment areas".
I notice that this part of the conversation wasn't mentioned above - that and their desire to exploit its customers with NFT's too doesn't exactly leave me 'optimistic', let alone interested in 'anything' they are making. I don't care whether they make an AWESOME game, I still feel reluctant to 'support' SE.
Well I'm just glad these games still have a place in the industry at all. The vast majority of my game purchases come from Japanese studios. The industry wouldn't be the same without them.
Aside from series like Dragon Quest and Splatoon, which are way more popular at home than the rest of the world, this has been the case for big-budget Japanese games for generations. There's a huge level of demand for Japanese media worldwide.
@TheTony316 Why do people always say that? How do you know that JRPG or RPG don't sell on Xbox? If people want RPG they will buy them even if they're on Xbox.
@Snake_V5 JRPGS do sale a little on Xbox but it’s nowhere near the numbers of Nintendo or Sony’ level. That’s why most devs skip Xbox day 1 releases. Only reason Xbox gets most of the Japanese games is because Phil has to write a check to bring them over.
And yet they bargain away their western studios with some historic IPs, refuse to do native ports of Kingdom Hearts (and many other franchises) to the Switch while also refusing to get most of their AAA games to any console other than PlayStation, the ‘global market’ certainly doesn’t seem to be a priority right now…
@IOI totally agree if western market is their priority some of the decisions they have made are baffling
@Snake_V5
There's a reason why most AA JRPGs skip Xbox to this day. If the platform was viable enough, you'd see more of these games on the system.
@Snake_V5 - If the sales for JRPG's on Xbox were acceptable to begin with to warrant porting them over, Microsoft wouldn't need to pay them to bring them over in the first place, the Devs would just do so.
Obviously, these Developers evaluated the 'risk vs rewards' of putting their games on Xbox based on data from past games already available on Xbox, and deemed it not worth the effort, I mean why else would they put Octopath Traveller on Xbox, but then choose to skip Xbox with Octopath Traveller 2? Logical conclusion is that not enough people on Xbox bought/played the first Octopath Traveller, so Square Enix just decided putting Octopath Traveller 2 on Xbox wasn't worth the effort.
But... Hang on a minute, am I right in thinking that they sold off a load of Western studios recently?
@JustPlainLoco And FF7 Remake? We know Sony has obviously paid for permanent exclusive on PS with it because it's been over 2 years and it still isn't on Xbox. Would you say it's more because of Sony or that Square Enix wouldn't themselves anyway.
I mean they have to, unless they are making budget conscience games for Switch - which Final Fantasy is clearly not.
It only makes sense that the Japanese market alone can’t sustain these ballooning development costs. The sad part is that more niche series are likely to fall by the wayside while companies go in on safe bet IPs that are sure to perform globally.
@Snake_V5 How much do you think MS pays to put a game for free on Gamepass?
It’s all about the finances. FF7: R is a £100Million+ game. If Sony gave them 10mill for exclusivity that would pay for the gamepass fee many times over.
@Snake_V5 - Well Square Enix clearly didn't see any downsides to accepting the deal, just as other Developers don't see the downside in accepting a fat cheque from MS to have their games put in Gamepass. Not to mention Square Enix never said FF7 Remake wasn't coming to Xbox, just that it likely isn't happening until after the FF7 Remake Trilogy is done.
This is good right, this means more games from Japan will come over and hopefully at the same time as the Japanese release. This can't just be the same for square enix, but for all of them (maybe not NIS games)
Surely this means dragon quest 10 offline is coming west?
And future Trails games release at the same time instead of years later.
If the western market is so important then its time to treat it so.
And a few months ago people were losing it cause PlayStation moved their HQs to the west. And now all docile creatures
Company that refuses to make most of its games available on Switch at launch complains Japan is not enough… what a shocker!
@JustPlainLoco well more and more people are becoming to accept anime, every year the anime and manga market grows in the west, the subscriber count for funimation and Crunchyroll keeps rising, there's even some anime releases on Netflix than manage to reach the top 5 viewed shows. But you do still get the odd clown that seems to think Japan is a pedo country for liking anime etc
In terms of why I think jrpgs don't sell well in the west is because Japan is more of an hardcore gaming country, not many buy consoles just for one or two games, games like fifa, call of duty dont do well. Yet in the west there's more casual gamers than hardcore, people who just buy a couple games a year and use their consoles mainly for music and Netflix etc.
And from someone who plays a lot of jrpgs, I also would say that the length to complete them could also put people off.
I think what would increase people into playing jrpgs more would be to create more anime games based off popular anime shows, or to get people into anime first by creating more anime shows based off other popular non anime TV series or games like what happened with cyberpunk edge runners and the witcher anime.
More attention to anime brings more attention to anime games.
I actually don't care if we have to wait between the Japanese and western release, the important thing is that there's a western release at all. If it's a good game, it's not gonna suddenly be a bad game in a couple months or a year.
@Snake_V5 it’s a statement that tends to just come from anti-Xbox ps fans, usually comes with the mindset that “Xbox users just want first person shooters.”
They tend to try to back it up with boxed copy sales of games and continuously dismiss that Xbox has a way higher digital-to-physical sale ratio.
Its nice that Japanese Publishers have finally clocked on that the world is bigger then Japan. Gaming is bigger then ever and the audience for say FF is far bigger then it was back in the PS2 era, as long as the games are still very much japanese i think focusing on the west is a good move and Capcom in recent years have nailed this.
@UltimateOtaku91
Sadly statements like this tend to mean “we will make fewer games like Live-A-Live and Octopath and try to focus on the kind of games we think the west wants.”
@Snake_V5 this didn't help
https://www.windowscentral.com/japanese-publisher-says-microsoft-isnt-supportive-japanese-games
But, they will get that support back if the series S sells more and more in Japan.
@Tharsman You say that but if JRPG's sold so well why does the Xbox lack so little of them? It will be interesting to see the numbers for Persona on it though.
Wait... Hold up a minute. Is this the same Square Enix that sold off all their Studios except for the japan-based ones?! Are you serious Square? The same Square Enix that forced those Western Studios that they sold off for pennies on the dollar to make garbage and thus restricting their creative control?
That's hilarious. Yah... Way to think beyond Japan.... Lmfao
@Tharsman my assumption was that once upon a time gaming was drawn along tribal lines and Japanese consumers/devs were naturally inclined to support native businesses like Nintendo and Sony over Microsoft, leading to this image problem Xbox has with traditionally Japanese content.
@Tharsman yeah that's doesn't sound promising, I heard that the latest star ocean might be the last as well, plus games like valkyrie elysium and Diofield scoring badly. We could end up just getting flooded with dragon quest, final fantasy, kingdom hearts and Nier games
@WallyWest does this mean more games will come to more platforms or that more games will make it over from Japan?
@JustPlainLoco Have you ever considered that hardcore gamers, like myself, have actually tried Japanese games but don't like them?
I've tried a few and, I'm not saying they're bad, but they're really not for me and I'm sure that's a similar case for lots of other gamers too.
The reason behind the naming of final fantasy is because they wanted a name that would appeal to a global audience
Just wait till they figure out the world population has started to decrease on a generational basis.
@Tharsman Yeah, the comment doesn't make me optimistic for the future. Feels like Final Fantasy may become Square Enix's CoD.
@UltimateOtaku91 How are they not supportive when we've seen more and more Japanese games come to Xbox than ever before.
@Eldritch - And that's fine, you at least tried to get into them but couldn't, nothing wrong with that, I myself don't like Sports or Strategy-based Games. But the majority of gamers don't even give these games a try OR simply allow one game to dictate their opinion on all Japanese Games.
Combined with comments from Square Enix a few months ago about how Japanese devs shouldn't try to emulate what western devs are doing and should stick to what they are good at, this sounds good to me.
More Japanese games coming to the global audience? Yes please.
This contrasts with Atlus comments on Persona 5. What western gamers enjoy is Japanese titles aimed at that market but released over here. Aiming for a global or predominantly western audience tends to make such titles quite dull tbh.
@WallyWest Microsoft AND Japanese devs have spoken on it: during last gen, by delaying the Japanese launch of the Xbox one by almost a full year, Japan simply took it as a message that Xbox didn’t care about Japan or their developers. Once old management was fired and changed all around, they spent almost the entirety of last gen trying to fix their relationships with the general Japanese market.
@UltimateOtaku91 I think forspoken is a big hint at what they think the west wants. Let’s see how it turns out whenever it launches.
The reality, in terms of console sales in Japan, not being that may people have a PS5 or XBX. Leaves you in an odd place when your company has shunned the runaway success.
As a few others have eluded too, hopefully this means more content in the west and Europe.
On Xbox, the One era did tremendous damage everywhere, and I still think it's going to be a while before Japanese studios and publishers release content on a continious basis on it. I think they are going in the right direction, but, I would argue that if you were a JRPG fan, at any point, you would have gone with PS in the first place anyway.
@Michael2008ish
I was wrong, it was top 10
https://www.google.com/amp/s/comicbook.com/anime/amp/news/netflix-most-watched-anime-2020-globally/
"TV Asahi's All-Nippon News Network (h/t Anime News Network) shared a breakdown of how anime is doing on Netflix, and revealed that anime regularly makes the Top 10 lists of most-watched shows on Netflix around the world. Not only that, but anime viewership on the service has doubled since 2019."
I predicted this five years ago when my friend was insisting that Sony’s PS5 would be a hybrid like the Switch, in order to compete in the Japanese market. I knew Sony wouldn’t care about the much smaller Japanese market already dominated by phones and the Switch.
I just think in genreral, some gamers get put off by the quirkiness of Japanese games. Like 20yrs ago not alot of ppl paid or bother to play a JRPG in America and it is still the same now. They have modernized the hell of Final Fantasy for the western audience and personally for me I dont like it, but, because of that they found success.
Anime has definitely helped but most ppl in the casual market want FPS/3rd shooter, AAA, and your occasional Animal Crossing games.
I will always love Japanese games, most of my favorite games are Japanese, western games put me off(not all)because some try to put their social commentary into it and I am not here for that.
@Snake_V5 octopath traveler had an abysmal completion rate on gamepass. Sqaures is not wasting money and time porting games to a console where the player base barley play their games let alone buy them.
@Snake_V5 "Microsoft would obviously pay Square Enix money for it." And Sony is obviously paying for it to be exclusive so SE isny loosing out 🤷🏾♂️
Saying this right ater they just sold off their western studios how ironic lol
@UltimateOtaku91 I would describe myself as a hardcore gamer but have no interest in jrpgs people just have different tastes lol
@Tharsman it's a well known fact that those kinds of games don't sell nearly aswell on Xbox as Nintendo & playstation , probably because Microsoft / Xbox is a US company couple that with the fact that their push of gamepass has led to a large number of Xbox gamers not buying games & just saying they'll wait for them to hit gamepass & it's no surprise that Xbox isn't a priority for them
Most AAA Game budgets are just too high to limit sales by only selling to a handful of territories
@3Above Microsoft could pay them triple 😁
People are clapping that xbox had like 100k players for Persona 5 when its essentially free while it sold 7+ million on playstation.
@JustPlainLoco Not to mention the fact that virgin is even used as an insult in the first place. There’s so much stupidity there.
@Snake_V5 because xbox sucks. Playstation ftw forever!
@Snake_V5 Morrowwind was on the original Xbox if it hadn't been successful we wouldn't have The Elder Scrolls series on console. RPGs are the main thing I play on Xbox. I feel it is more suited for them and the Xbox controller does a better job with them.
@JustPlainLoco really, I think your thoughts are a bit outdated, while not completely, of course.
@CieloAzure 100% agree, I think 80% of my game collection is Japanese. I don't like almost anything about traditional western games with a few exceptions.
There aren't very many "Japanese" games anymore just games by Japanese devs. They're trying to make games to suit the western pallet and that's not what made me like their games. It's a loss for gamers on both sides. Money ruins everything again.
@Snake_V5 and as the sequel is ps5 only how would the series s fare ,microsoft want parity with both there consoles ,and the other guy is right xbox gamers don't play jrpgs ,wouldn't mind seeing the figures from persona 5 on gamepass ,to see how many players played for more than an hour.
@Snake_V5 The exclusivity with Sony likely already ended and Square-Enix, like everyone else, realized putting it on Xbox wasn't worth the time and money at this point.
Square Enix is funniest AAA publisher out there.
They managed to ***** up easiest slam dunk of a game (Avengers) and botched marketing of GotG so hard that game underperformed.
They are limiting exposure of their games by making a timed exclusive games on PlayStation and then crying that market is not big enough.
Like, what the actual *****?
@Snake_V5 True people follow games not the platform it's played on.
@GigaGaia Crazy since they have an almost inexhaustible supply of money and Sqeenix is hurting for money.
@Godot25 😆😆They continuously snub the richest platform then cry about their revenue shortfalls.
@TheTony316 yea cause they aren’t on the system
@Would_you_kindly I think gamepass is great for niche and indie games i dont believe you want to push your big budget games on that platform.
@Fishmasterflex96
They aren't on the system because the JRPG fanbase isn't on Xbox. Microsoft and many japanese publishers tried during the 360 era but no one bought these games.
Square Enix couldn't do anything with the IP it had and spent years running franchises into the ground.
@Frank90 - Which parts are you specifically referring to?
@UltimateOtaku91 - Can't disagree with a lot of what you've said, you make some great points, and yes JRPG's can be very lengthy experiences, I played Ys 8 about 2 months ago, played it for two weeks straight and suddenly got burnt out and had to take a break from it, so yeah I agree length can be an issue for some, but that's usually why after playing a lengthy game, I'll then play two short experiences and a medium-length game before I jump back into another lengthy experience.
Problem is with games based on Anime is that you have someone like Bandai Namco who has ahold of the licenses for most of the well-known Anime IP's, and they don't give the Developers a big enough budget to make a truly spectacular game because they don't have a lot of faith that gamers will even buy it, so most games based on Anime end up feeling pretty basic and uninspired, which is a shame because Japanese Developers are some of the most creative developers out there when given the time, money and resources to show off the full extent of their creativity.
This is great news for people who live outside Japan, more games to play!
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