Are Japan’s console and mobile game markets shrinking in favor of PC games? Developers discuss
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.
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 less feasible as an option for consumers due to worsening 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.
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.
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.