Microsoft On Japan Xbox Woes, Sega Non-Merger

Thanks to GamePro.com for their article discussing Microsoft CEO Steve Ballmer's recent comments on the Xbox, as given to an investment-related business conference in Washington. In particular, Ballmer "..admitted that the Xbox is 'having trouble' in Japan but expressed confidence that the system's fortunes would turn around by the time its successor, the so-called Xbox 2, is launched in the year 2006." There was also an opportunity to ask about the often-rumored Microsoft buyout of Sega, and Ballmer was fairly confident that it remains a rumor: "'There are no plans for that,' the Kyodo news service quoted him as saying at the conference. 'I don't think that will happen.'"

Comments

Xenophobia

[Anonymous Coward]

Did the Atari 2600 fare well in japan? Probably not as well as it should have...

It seems that the japanese know what it takes to enter the North American market, whereas North American companies still do not know how to market to the japanese.

I am not a fan of the Xbox. I myself own a PS2 and GC. However, I don't blame MSFT for their failure. I attribute much of the failure to the xenophobia of japanese and their culture.

Re:Xenophobia

[T-Bear]

"whereas North American companies still do not know how to market to the japanese"

I think the problem is that North American companies feel the need to manufacture controllers larger than the average car in Japan...

Re:Xenophobia

[snubber1]

Hunh? Are you even aware that the Xbox 'S' controller was made exclusively for the Japan release? After it came out all us americans wanted to get our hands on it (literally).

Now on the other hand, the Xbox itself would qualify as a mid-sized japanese apartment.

Re:Xenophobia

[NanoGator]

"I think the problem is that North American companies feel the need to manufacture controllers larger than the average car in Japan... "

They made a smaller one for the Japanese market. The real problem at this point is the games.

Re:Xenophobia

[easychord]

Nintendo only took off in America because the failure of American consoles, like atari, left a gap in the market.

You also can't expect them to buy games that they don't want to play. Japanese companies look at what is popular in the west and take it into consideration when making games.

Microsoft released a console with an FPS game. Only a minority of japanese gamers are interested in FPS games. I live in the UK and don't own an XBox, because I'm not a fan of that genre.

I don't think that Japanese people are that Xenophobic, but you can't always predict what they will like.

They love David Beckham. More of them went to see Harry Potter than Lord of the Rings. Tomb Raider was the film that knocked Spirited Away off the top of the charts.

Re:Xenophobia

[T-Bear]

Yes I am aware of the S controller, I own 4 of them.

You'll have to excuse me for making a joke...

Where is page 2?

[SmallFurryCreature]

Summary:

1. Xbox bombed in japan but xbox 2 wil own them.

2. We are not going to buy sega yet. Or at least we are not telling you about it

This isn't an article. This is a press clipping.

Sticks and Stones

[beders]

...the so-called Xbox 2...

Think they will use such a risky name?

Re:Sticks and Stones

[Anonymous Coward]

Windows 95, Windows 98, Windows 2000...

Maybe they'll call it Xbox 2006. After spending $1,000,000 on market research and focus groups, of course.

It's about the games!

[h0mer]

Besides the slight image problem and clunky-looking hardware, Xbox has trouble in Japan for one reason: Japanese developers. Microsoft seems to be having trouble understanding that the Japanese people want to play Japanese games. Buying Rare or Bungie or whoever is not going to help their Japanese marketshare.

I read Gaming Life In Japan every week on IGN and they post the last week's sales charts. There have been 2 titles that debuted in the top 10: Dead Or Alive Xtreme Volleyball and Capcom vs. SNK 2. Also, most weeks the PSOne outsells the Xbox in Japan.

What can Microsoft do to improve this situation? They need to spend even more money. They need a epic RPG, maybe get some anime creators to help like Akira Toriyama did with Chrono Trigger.

Another thing that goes for all 3 companies, where is the innovation? I want something different, I don't want another FPS or platformer. If anyone has played Wario Ware on GBA, you know what I'm talking about. Everyone I've let play that game absolutely loves it. And that's because nothing like it has come out before now. New genres already exist, it's up to designers to find them.

Re:It's about the games!

[mink]

Toriyama was involved inthe console industry long before chrono Trigger.
Check out the Dragon quest (Dragon Warrior) series of games from way back.

It's true

[Rayonic]

Yep, the Japanese are just as averse to change as everyone else, if not moreso.

Actually, not to flame, but it can be argued that the North American market is most open-minded when it comes to it's games. Software from all over the world can enjoy great success there, from just about any genre.

Re:It's true

[hibiki_r]

It is more open in the sense that it does not matter which contry the developer is from, but moving away from established genres is clearly a no-no in the US market (unless, of course, the game is choke full of guns). Remember ICO, or Eternal Darkness? Great games, low american sales.

Every market has its quirks. Japan's is just less "politically correct" than most.

Re:It's true

[Rayonic]

> but moving away from established genres is clearly a no-no in the US market

It's the same way in Japan, Europe, and everywhere else for that matter. Some point to Japan and say "They don't conform to established genres, they're more innovative!" When in fact they're just as trapped by the status quo as we are -- it's just that theirs is different.

For a FPS, or open-ended RPG, or puzzle-adventure to gain popularity over in Japan would truly be as revolutionary as the U.S. market buying millions of copies of Ico.

(And actually, did Ico sell well over there? I don't seem to recall it being a big hit anywhere.)

Re:It's true

[Gizzmonic]

For a FPS, or open-ended RPG, or puzzle-adventure to gain popularity over in Japan would truly be as revolutionary as the U.S. market buying millions of copies of Ico.

The Japanese don't like open-ended RPGs or puzzle-adventures?

If you mean, the Japanese don't like the Dungeons-and-Dragons style PC RPGs (a la Baldur's Gate), you're right, because they are BORING. They are a fringe genre in the US as well.

And what type of puzzle adventures do the Japanese dislike? Super Mario Sunshine? Zelda? Seriously, you're fulla cack.

Re:It's true

[Rayonic]

> If you mean, the Japanese don't like the Dungeons-and-Dragons style PC RPGs (a la Baldur's Gate), you're right, because they are BORING. They are a fringe genre in the US as well.

Huh? Baldur's Gate was a smash hit in the U.S., as was its sequel. The "boredom" complaint is highly subjective too -- I still consider Fallout 1 and 2 to be among the best games of all time.

> And what type of puzzle adventures do the Japanese dislike? Super Mario Sunshine? Zelda? Seriously, you're fulla cack.

Sorry if my terminology confused you. By "puzzle adventures", I mean games like the Monkey Island series, Grim Fandango, Sam and Max, The Longest Journey, etc..

Puzzle adventures (or whatever you call them) were never popular in Japan. They were big in the U.S. for a while, but their popularity waned in the mid-1990's (although they might be making a comeback soon).

Europe is currently the biggest producer of puzzle-adventures, where they are still financially successful.

Re:It's true

[Daetrin]

it can be argued that the North American market is most open-minded when it comes to it's games. Software from all over the world can enjoy great success there, from just about any genre.

Except for dating sims, mahjong games, a lot of the dancing type games other than DDR, Vib Ribbon, a lot of strategy games, a lot of the RPGs other than Final Fantasy (and even those are only gradually improving from a really spotty porting record) and i'm sure there are a lot more that i'm not thinking of.

Re:It's true

[jjhlk]

It's not that the North American market is open-minded, it's that everybody else is smart enough only to make games for the US that they think Americans will want to play.

Case in point: buy a playstation Demo cd that has import games. Lots of those games are not the sort of thing the average American will want to play. And thus you don't see them in North America.

Re:It's true

[Gizzmonic]

Huh? Baldur's Gate was a smash hit in the U.S., as was its sequel. The "boredom" complaint is highly subjective too -- I still consider Fallout 1 and 2 to be among the best games of all time.


Baldur's Gate a "smash hit"? Not really, even in the PC game market, which is about 1/10th the size of the console market. There are few if any of these "US RPG" style games in the console market (and no, the Playstation 2 Gauntlet-clone they call Baldur's Gate doesn't count).

Point-and-click adventures (which you call puzzle adventures) were never particularly popular ANYWHERE. They may have been a big fish in a very small pond (early 90's PC market)...but let's not forget, the height of their development coincides with the early days of CD-ROM technology. Their relatively static style of gameplay made it easy to slap together some grainy videos on a CD-ROM and call it a "game." Myst sold more copies on the "wow, look at those graphics" factor than the nature of the puzzles.

Love them or hate them, you have to admit that point-and-click adventures are more like interactive fiction and less like a game, which might help to explain their lack of popularity in the US and Japan.

Re:It's true

[Rayonic]

Except for dating sims, mahjong games, a lot of the dancing type games other than DDR, Vib Ribbon, a lot of strategy games, a lot of the RPGs other than Final Fantasy (and even those are only gradually improving from a really spotty porting record) and i'm sure there are a lot more that i'm not thinking of.

You can't blame people for not buying what isn't available to buy. The few rhythm games that have made it to the U.S. have done pretty well.

Mahjong isn't popular here, but you'd be surprised at the pervasiveness of some computer versions. You can play Ningpo Mahjong right now at PopCap, for instance.

I can't think of a single dating simulation ever seeing major release here in the U.S. The closest I can think of is the dating portion of the PSX game "Thousand Arms".

I didn't really understand what you're trying to say about RPGs. Seems as far back as I can remember, the American market has been flooded with RPG games of all types, from all over the world. Furthermore, both linear and open-ended RPG games have enjoyed great success here.

Re:It's true

[Rayonic]

Baldur's Gate a "smash hit"? Not really, even in the PC game market, which is about 1/10th the size of the console market.

Baldur's Gate sold 1.5 million copies, and Baldur's Gate II sold more. Seems pretty successful to me, even by today's standards. Plus, the series has recieved high accolades from every credible review source.

Perhaps you're thinking of another game?

Point-and-click adventures (which you call puzzle adventures) were never particularly popular ANYWHERE. They may have been a big fish in a very small pond (early 90's PC market)...but let's not forget, the height of their development coincides with the early days of CD-ROM technology.

Actually, most agree that the CD-ROM was the death-blow for the genre. The market was flooded with crappy FMV watch-fests with bad acting, and it turned people off the idea of adventure games entirely. Some say Myst is also to blame, but I'm not entirely positive about that.

Anyhow, it's been nice chatting with you. Just a couple other things: Puzzle adventure games were popular in the 80's as well as the early 90's. Also, the term "point and click adventure" doesn't exactly fit, since they don't all use the mouse. See ya.

Re:It's true

[August_zero]

Myst was the best selling PC game of all time simply because for a long time it was the only CD-Rom game that actually worked most of the time on most systems, and so it was included with virtualy every new PC, and PC CD-Rom Kit sold in the early 90's

Still you are correct, don't mind me.

Re:It's true

[Daetrin]

The companies that port the games are only willing to port things that they think they can make money on. Most of the stuff i listed is very much a fringe market in the US. The reason they aren't available to buy is because the game companies don't think enough people will buy them to justify the cost.

Sega?

[Andy_R]

...because Sega know how to make successful modern consoles, right?

Re:Sega?

[Acidic_Diarrhea]

Sega, the software company, has a proven track record that is enticing to any console manufacturer - get all of Sega's games exclusive to your hardware and you've got a step up on the competition. Sega, the hardware company has a long history of hits and mostly misses but no one, except maybe you, is thinking that Microsoft is mulling over Sega for their hardware expertise. It's all about Sonic, Virtua Fighter, the sports line, and a host of other games that Sega has in their pocket.

Re:Sega?

[Andy_R]

You give a list of titles that are currently GameCube exclusives, which highlights the fact that Microsoft would gain 2 things from purchasing Sega, games for them, and lack of games for their competitors.

Re:Sega?

[macdaddy357]

The Dreamcast may not have been a big hit with gamers, but hackers sure seem to love it. Sega might be able to make some money by bringing it back, and selling it on haxOr tOOlz websites.

A query...

[Iscariot_]

Why is it necessary to penetrate both US and Japaneese markets? There are some products that simply don't work in both markets, and they do fine.

Example. Hamburgers do not sell well in India. Also, you'll not find many restaurants selling cat here in the states.

Is it simply not possible to make money hyper-focusing on one market instead of two? Am I missing something? It seems that Microsoft has been awfully amitious in penetrating the US market, much less going for the Japaneese market as well. Perhaps they should consider the Xbox 1 as a US only device, and stop waisting time and money on the Japaneese market...

Re:A query...

[Anonymous Coward]

What are you, some kind of communist? We must extract all wealth possible from every market imaginable.

We must do this because we must.

Re:A query...

[Derkec]

It's neccassary because the two largest gaming markets in the world are the US and Japan, followed by the EU. If you are selling a gaming platform you sure want to do well in the top two markets. If you kick butt in one but fail in another you don't make the kind of money that you, your shareholders and your developers are expecting. Start losing out in the realm of mindshare and you could find yourself kicked out of the console market.

Re:A query...

[Achronos]

Part of it certainly has to do with getting quality Japanese developers. Sega, Square, Namco, Konami, Capcom, etc. aren't going to be making any games for your console if it isn't being made in their home market. If the Xbox were more successful in the Japanese market, it would probably have more Japanese games.

Then again, it is a chicken and the egg problem. To get more successful in the Japanese market, you need games that appeal to the Japanese gamers, and the people who do that the best are the developers in Japan.

Re:A query...

[Guppy06]

"Why is it necessary to penetrate both US and Japaneese markets?"

To diversify their customer base. The more markets they get their fingers into, the less reliant they are on one economy. If either the Japanese or the US market decides to go mid-80's again, having a foot in the other market will keep you afloat.

Xbox is dying!

[Anonymous Coward]

Xbox is dying, just like BSD. That is why the Japanese won't buy it, and no one is posting on theis thread.

Re:Xbox is dying!

[stanley_caiww]

Why compare BSD with Xbox? They are differnet.

subject

[August_zero]

X-box is failing in Japan because the Japanese don't want it, not because they think the system is failing as some would like to beleive. The Japanese have a lot of national pride when it comes to their video games, and MS knew that it was going to be an uphill battle over there.

MS is in a tight spot though, without the japanese market to sell systems, 3rd party developers are harder to court since that is almost half of the market. Companies like Konami and Capcom are already reconsidering their lineups for the x-box (and the game cube)

Reality Cheque please!

[Kris_J]

expressed confidence that the system's fortunes would turn around by the time its successor, the so-called Xbox 2

So, he expects sales of the first generation device to increase as the second generation device gets near release. Which mirror universe is this guy from?