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

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...

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 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.

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: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.)