Out Like a Tiger, In Like a Rabbit

2022 in Review

AI Image for 2022, Year of the Tiger (Made with Craiyon)

Prompt: an old tiger, surrounded by the bones of its prey, laying its head to rest on a snowy forest floor near Mt. Fuji at sunset.

In 2022, the Japanese gaming industry experienced several major developments, too many to list in entirety here! But we did pick 3 that we thought were notable to pay attention to, in terms of market potential, user engagement, and corporate hardship, not in that order.

We Feel Bad for Sony

First up is Sony. They’ve had one helluva time with the Playstation 5 - part of Sony’s flagship console brand, which replaced the PlayStation 4 in 2020 - and we feel kinda bad for them. Due to ongoing production & logistical challenges and chip shortages, the PS 5 was an already high-demand product that is being made more difficult to get your hand on by the day. And this has been the case for over 2 YEARS now…  

But hey, live, learn, and move on, or something like that. In that spirit, Sony launched new hardware for the PS 5. Additionally, Sony also announced a dedicated VR headset - the Playstation VR2 - in January 2022 at the annual Consumer Electronics Show, though it was only given a release date of February 2023 last November. The price point is also a topic of conversation.

Surprise, Surprise

A second development that caught our attention was the continued rise of the mobile gaming market. At the start of 2022, Japan was home to over 70 million active mobile gamers, and this number is expected to continue to rise. While already a growing market pre-corona due to the convenience factor as well as growing library of top-tier games on both iOS and Android phones, mobile gaming has unsurprisingly seen steady if not notable growth through the pandemic. As a result, many Japanese gaming companies have begun to focus on mobile gaming, creating tailored experiences for the platform. 

According to Global Stats’ Stat Counter - which we have no affiliation with and certainly have not vetted - in December 2022 iOS had a ridiculously high Japanese mobile OS market penetration at 67.11%. We advise our clients to develop for both operating systems, but we’d be lying if we said that we considered them equals. Fact is, Apple dominates the Japanese market, and if you don’t develop with them in mind, you’re gonna have a hard time.

It’s a Party

Third was the growing popularity of eSports in Japan. In 2022, Japan's eSports market was valued at over $500 million, and this number was expected to continue to rise in the coming years. This growth was due to the popularity of games such as League of Legends and Overwatch, as well as the development of dedicated eSports venues, such as the RED eSports Arena in Tokyo Tower, and eSports teams like Scarz incorporating, and the reemergence of branded eSports tournaments like in Tochigi.

Honestly, our interest in eSports is pretty highly concentrated in 2 areas: executive leadership, and senior care. This combination might sound a little bit disjointed, but give it a think and let us know what you come up with. We promise its fiendishly interesting.

Bonus Content

Cloud applications also saw some action, with some Japanese gaming companies beginning to experiment with non-standard distribution platforms to reach a wider online audience. While that is a potentially lucrative area to operate in, we also find it kind of boring because it should’ve been done years if not decades ago.

Indie development also made the news here and there, which we like to see. We officially attended Bitsummit and unofficial crashed Tokyo Game Show afterparties, threw a few private eSports events ourselves, and uncovered some wild stories, so there’s positive progress to report.

Oh. Crypto and AI. Right. Eh, there’s way too much to talk about there. Go ask ChatGPT about it.

AI Image for 2023, Year of the Rabbit (Also made with Craiyon)

Prompt: an energetic rabbit with samurai armor sitting on top of the Shinkansen speeding past Mt. Fuji on a crisp, clear winter day.

Bring It On, 2023

Overall, the Japanese gaming industry had experienced notable growth in 2022, and we expect to see this trend continue in 2023. In the coming year, we’re looking forward to further expansion of the mobile gaming market, wider implementation of distribution platforms, and the continued growth of eSports. Oh, and if we have anything to do with it, the emergence of new indie games.

We’re also curious about the fate of Sony’s Playstation 5, which seems destined to misstep at every turn. Only time - more specifically, a few years - will tell where Japan’s headed, but hey, it’ll probably be pretty exciting!