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CESA Boss Talks Japanese Gaming Problems

Thanks to GameSpy for its interview with CESA executive managing director Kazuya Watanabe, as the head of the "game industry's trade organization" in Japan discusses issues such as the Japanese games industry's dislike of the used videogame market: "Used software sales are now legal and covered by the law. Despite the fact that the court has passed judgment, the software manufacturers are still not satisfied with the outcome because of the high percentage of used sales in overall Japanese game sales." He also addresses the perception that many Japanese PC titles are adult-oriented: "They stand out. They do not have a large market, but they catch your eyes. If you look at that, you may think, 'Boy, these Japanese are very strange.' It is not the case."

44 comments

  1. Used games by zelphior · · Score: 1

    Lots of game manufacturers (and retailers) seem opposed to used game sales (especially for pc games). The game store that I frequent has had a remarkably smaller used game section the last few times I've been. No pc games, and only a single bin of used XBox and Playstation games. They are also giving very little money for trade-ins, only a few dollars for even relatively new games. Anyone else notice this trend?

    --
    If you can read this then I forgot to check "Post Anonymously"
    1. Re:Used games by Danse · · Score: 1

      That's the main reason I don't usually buy used games. They generally aren't much cheaper than new ones, and it's usually easier to wait for a sale someplace like gogamer.com than to pay for a used game. That, and the fact that you're right about them giving squat for the games I try to trade in. It's just not worth it.

      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
    2. Re:Used games by realdpk · · Score: 2, Insightful

      I'll buy GBA and PS2 games used, but I won't buy PC games used typically. I would not want to buy one with a CD key that is locked out from online play/updates.

      So the solution, in my eyes, would be for the publishers to incorporate keys into their console software. They'd have a real uphill battle doing that though (for everything but the Xbox and very few PS2 games, its not as though entering your CD key is going to get you anything)

    3. Re:Used games by MMaestro · · Score: 2, Informative
      No pc games, and only a single bin of used XBox and Playstation games.

      First, I assume you mean PS2 games just for clarification. Secondly, most retailers are reluctant to take PC games on a used basis because it is extremely risky (I'll get back to that later). Thirdly, retailers give very little money on trade-ins because thats largely how they make a profit. The most money you can get on a trade-in without using any special deals? $25, and thats only if the game is a new release/still highly priced. What happens after that? Simple, the store sells it pre-owned for $45 (yes, only $5 off). Profit : $20 for the store.

      Now regarding the PC games issue, most retailers won't take them back in fear of piracy. Face it, every geek, gamer, and grandma has a CD-burner these days. A few hours/minutes surfing the net can get you some CD burning programs which will bypass copy protection systems. So what do retailers fear? They fear that Sam Surfer will buy PC games, illegally burn himself, his friends, and his neighbors copies, and then sell it back to the store... with the manuals missing. Probably the reason why they don't fear the same things with console games is because they require a mod chip in order to play copied games. (Course for the wise and in the long run modding a system saves a bundle.)

  2. This guy knows his stuff. by Naffer · · Score: 3, Insightful

    From the article:
    "Also, ownership is an important component of American culture. People do not like to buy things unless they feel that they own it with no strings attached"
    How is it that the head of Japan's major video game trade group has more insight into American consumer desires then our own trade groups?

    1. Re:This guy knows his stuff. by Colazar · · Score: 3, Informative
      Actually, that particular statement was made by the interviewer, not Mr. Watanabe.

      --
      He decided to just watch the government, and kind of scale it down to size, and run his life that way. --Laurie Anderson
    2. Re:This guy knows his stuff. by Naffer · · Score: 1

      You're absolutly correct, I don't know how I missed that one. I guess near the end of the article I had just started scanning and that particular statment caught my eye.

  3. They're not? by RichardK · · Score: 0

    If you look at that, you may think, 'Boy, these Japanese are very strange.' It is not the case.

    They're not? I suppose 'strange' is too closed minded, but 'different' certainly suffices!
    I'm so used to the culture around me(Aussie) that when I look at the Japanese I can't help but be in awe. They're absolutely brilliant people but have the kookiest of cultures. Manga, Anime... need I say more!
    It's VERY addictive stuff.

    1. Re:They're not? by Anonymous Coward · · Score: 0

      What kind of idiot would expect otherwise? You go to different parts of the world, you meet different kinds of people who live different kinds of lifestyles.

      So fucking obvious. If a Japanese person who is as unworldly as you were to visit your home, they'd probably be aghast to see you wear the same footwear inside and out of your home, as well as in the bathroom. "The Aussies are brilliant people, but they have the filthiest of cultures."

      Different? Yes. But no better and no worse, certainly not deserving of judgment.

  4. Japanese? Weird?? by Toxygen · · Score: 1

    He also addresses the perception that many Japanese PC titles are adult-oriented: "They stand out. They do not have a large market, but they catch your eyes. If you look at that, you may think, 'Boy, these Japanese are very strange.' It is not the case."

    Now, I'm just about as tolerant as I can be about cultural differences, and I don't look down at another culture's adult entertainment any more than I would judge them by the clothes they wear.

    But there is a reason why there isn't an english translation for hentai.

  5. Used media.. by CashCarSTAR · · Score: 4, Interesting

    The thing is, even though I support fair use rights, there is a point in this. Used media, of all types, games, software, movies, music, is a killer of sales.

    In fact, more than P2P, it's my personal observation that this is where the real damage is to producers.

    Think about it for a second..sales of used media are pretty stable, if not increasing. This does one of two things..

    #1. It prevents a new sale on something that is still sold shrinkwrapped.

    #2. Even on obsolete media, it's taking valuable entertainment dollars out of the market.

    It's #2 that I'd be concerned about, more or less. People only have so much to spend on entertainment, and theoretically, it would actually be better, for example, for a consumer to spend that 20 bucks going towards a new game, and download the older game, than taking that money out of the potential market for their product. Now that's no guarentee that it'll work out, but you gotta be bold, be confident I guess.

    Now, I buy used media myself, and get it at a good price. (Buy 2 DVDs get 2 free) Even though I know it's hurting the producers, as long as they focus on piracy, and those scare tactics, instead of going after those stores, frankly, I couldn't care less.

    But it IS hurting them.

    1. Re:Used media.. by Cecil · · Score: 1

      I'm sorry, but that's just completely wrong. Used sales isn't a magical black-hole of entertainment dollars. If I sell my game to someone else, I have more money to spend on the latest new game. Your entire post falls apart if you take that into account.

    2. Re:Used media.. by Anonymous Coward · · Score: 1, Funny

      [...] I could n't care less.
      thank you, thank you, thank you!
    3. Re:Used media.. by CashCarSTAR · · Score: 1

      But it's not a 1-1 gain, at least with video games. You trade in a game for what, 10? 15 bucks? Then they sell it for 30 or so. I think that's how it goes. So that's 15 dollars sucked out of that economy. Not AS much, but it still hurts.

      In any case, if you didn't notice, when I referred to it as media, that's including music and movies, where such trade-in, just isn't as prevalent.

      I think that game rentals, in the long run, hurt more than used, at least in that particular market..not because that most video games are trash, in fact, I think there's more quality there than ever before, but that people can get their fill of a game within a week rental.

    4. Re:Used media.. by C0rinthian · · Score: 1

      Yup, and the used VHS market is KILLING Hollywood. And don't forget rentals, where hundreds of people basically share a couple copies of a title. I bet that is killing the DVD and console game market. Down with Blockbuster!! /sarcasm

    5. Re:Used media.. by Spatula+Sam · · Score: 1
      > it's taking valuable entertainment dollars out of the market.

      maybe, but you know where those valuable entertainment dollars go? Right back into the pockets of the consumers, who then procede to spend it on other goods and services. The harm in this case is against the consumer, who should have a right to control physical property that he has purchased. It's a DVD, not a license to play the game on the DVD, that people are purchasing.

      I don't see why we have to engineer these controls to make the gaming market become bigger than it should be under free market conditions. Although the gaming companies may cry economic foul, the economy as a whole should benefit from what would become a more efficient market system.

      //ss

    6. Re:Used media.. by Anonymous Coward · · Score: 0

      Netcraft proves: The RIAA is dying!

    7. Re:Used media.. by CashCarSTAR · · Score: 1

      Maybe so. And I think that consumers do have the right to resell their property.

      But I think it highlights the madness that is going through regarding things such as emulation, for example. Offering it for download for free is baaaad, but re-selling it and making money off of your work is good?

      Yes, there's a legal difference. But if the media groups want credibility, they have to be honest.

      Re-selling is perfectly legal. It's also hurting the industry much more than any sort of P2P or casual copying.

    8. Re:Used media.. by Anonymous Coward · · Score: 0
      On the other hand, there is a potential for producers to sell more new games if they produce quality titles. For example, I'm stingy with my gaming dollars. But if I buy a used game and really like it, I'm much more likely to buy another title (especially a sequel or similar title based on the same engine or whatever) from the developer or publisher. And since I already have a good idea that I'll like the game, I don't mind buying new (and may not want to wait until it is available used).

      This is similar to the idea that if I illegally download a song and really like it, there is a fair chance I'll buy the CD. I've heard that argument many times by proponents of P2P sharing, and I assume I'm not the only one to say, "yeah, I've done that".

    9. Re:Used media.. by BIGmog · · Score: 1

      The $15 profit that is gained by EB games or Gamespot isn't sucked out of the economy either. Companies don't just gobble up money. It returns back as investment or is given to shareholders as dividends. Granted it's generally not in gamer hands anymore unless you consider the gamer's paychecks that it's providing.

      --
      V O T E F O R M O G
  6. Used games by Neo-Rio-101 · · Score: 3, Insightful

    I can't see how used games is really any different than used book sales. Publishers also have to deal with these things called public libraries, where books can be traded and lent around freely. A new release book often sports the same price tag as a new release game.

    I honestly don't see Mills and Boon whining about how much of their stuff is in a used book shop.

    I suppose if the game industry wants to cut down on used game sales, they could always re-release their old stuff as an added bonus with the new game.

    --
    READY.
    PRINT ""+-0
  7. Nintendo by swat_r2 · · Score: 2, Interesting

    Didn't Nintendo try to shut down the Game Rental industry back in the eighties? I've always wondered how much rentals have cut into sales. Then again, you don't expect to buy a car (or date a girl) without test driving it first :)

    1. Re:Nintendo by BIGmog · · Score: 1

      Nintendo has recently implemened a loyalty system called Club Nintendo where you earn points for every NEW game that you purchase. Inside the game is a slip of paper with a code on it that you enter in the web site to earn points for your purchase. The points can then be spent on various Nintendo collectable goods. A used game would be unlikely to include this code thus I have always been persuaded to buy the new game instead.

      --
      V O T E F O R M O G
  8. Re:Japanese? Weird?? by WolfWithoutAClause · · Score: 4, Insightful
    But there is a reason why there isn't an english translation for hentai.

    It literally means 'pervert'.

    I think you are trying to make out the Japanese to be more different than they really are- for example, the tentacle rape is just a side effect of their weird legal system (no human penises allowed, no sex between women and animals either, but sex with imaginary creatures apparently falls into a legal grey area... go figure!); and the apparent youth of the manga characters is illusory- the Japanese consider the characters to be older than Americans do- there are some cultural differences relating to reducing sun exposure in Japanese women and physical differences that tends to make them look younger to western eyes than they really are. You cannot really condemn Japanese Hentai manga unless you understand the environment that it has evolved in.

    I mean, the Japanese may well consider LA porn to be barbaric and offensive (you can see pubic hair?)

    --

    -WolfWithoutAClause

    "Gravity is only a theory, not a fact!"
  9. Indeed... by Senjutsu · · Score: 2, Insightful

    I mean, the Japanese may well consider LA porn to be barbaric and offensive (you can see pubic hair?)

    I'm not sure that the culture that created "Max Hardcore" has any business commenting on the supposed strangeness of other country's porn. Who was the comedian who said "The first time I saw a Max Hardcore film, I didn't know whether to jerk off or call the cops"?

    Most of the oft-sighted strangeness of Japanese porn either has a direct analogue in our porn, or is otherwise a product of the strange obscenity laws imposed there.

  10. Most Japanese PC games aren't hentai? by Pluvius · · Score: 2, Informative

    I could've sworn that I read somewhere that a very high percentage of Japanese PC games are hentai due to the lack of popularity of PC gaming in Japan (i.e. consoles take care of the "real" gaming, so only the leftover crap makes it to the PC). Maybe it was a bad source?

    Rob

    1. Re:Most Japanese PC games aren't hentai? by dancingmad · · Score: 3, Informative

      Actually, my girlfriend has worked on translating U.S. PC games to Japanese (Deus Ex and Northland). Nearly everything we get comes out there, eventually. It's not lack of quality per se, but Japanese don't like playing those type of games (a sentiment I share).

      --
      "There is no time, sir, at which ties do not matter," Jeeves, (Jeeves and the Impending Doom)
    2. Re:Most Japanese PC games aren't hentai? by jetfuel · · Score: 1

      If you go to game shops in Japan, many many many low-quality porn games exist, but sales are tiny for each title. I'm sure that in the USA there are more porn films than normal ones (Squid Orgy XXVIII etc) but the mainstream stuff sells much more.

  11. Re:Japanese? Weird?? by Pluvius · · Score: 2, Insightful

    the tentacle rape is just a side effect of their weird legal system (no human penises allowed, no sex between women and animals either, but sex with imaginary creatures apparently falls into a legal grey area... go figure!)

    It's interesting--I'm sure the reason why the censorship laws were made was so the citizens wouldn't become corrupted by porn, but I'd bet that the Japanese are more screwed up by what resulted from the laws than what would've happened without them.

    Of course, I don't think the fact that Japan was the only target of a nuclear attack in history is merely incidental to this situation, either.

    Rob (I guess it was either hentai or superpowered mutants)

  12. Whoops, didn't RTFA by Pluvius · · Score: 1

    Watanabe actually says that hentai games are a small part of the whole video gaming market, not just the PC market, and that PC games aren't handled by their rating system anyway.

    Rob (At least that's what it looks like; he wasn't completely clear)

  13. Re:Japanese? Weird?? by alan_dershowitz · · Score: 1
    the apparent youth of the manga characters is illusory- the Japanese consider the characters to be older than Americans do- there are some cultural differences relating to reducing sun exposure in Japanese women and physical differences that tends to make them look younger to western eyes than they really are.

    This is not true. Many characters in hentai manga are in high school, even middle school. I couldn't count the number of manga where the main character is 14 and appears nude or in sex acts.

    The sexual objectification of pre-adult girls is a well documented part of japanese culture. This is not disputed. 23 is literally "over the hill" in the sex industry there.

  14. Re:Japanese? Weird?? by Anonymous Coward · · Score: 0

    It's not so much "no human penises". The law states something more like "no detailed images of the human genitalia". So, the result is a lot of gray area as each manga house sets different standards on what "detailed" is. And of course the tentacle rape is really a good metaphor for what rape is, I think, which is hardly a Japanese-only obsession (look hard enough and you can find it anywhere I think, but Japan and most of Europe are more open about having stores selling the stuff instead of pushing the government to zone away anything offensive from one's neighborhood).

    In any case, the whole thing about pubic hair is just a taboo, not any law. So it shouldn't have much meaning in porn (well, not any more than any other way that a taboo turns into a fetish turns into a whole genre).

  15. Mod the parent as funny +5 by News+for+nerds · · Score: 1

    Actually I burst into laughter... man! RTFA.

  16. Re:Japanese? Weird?? by News+for+nerds · · Score: 1

    How can you assume they are underage, when they are not in photo images of real human, but merely some drawings born from imagination? Do you insist on 'human rights' of those imaginary drawings? It seems your view of the world is perverted enough to confuse real world with virtual world, or free speech.

    Surely there are cartoons that are intentionally made to look like underage, but if you read Japanese language you'll find that none of them explicitly state that they are underage by themselves. Even with school uniform, when the author insists they are not students, they are not. Even in the real world, do you know there are places in Tokyo where girls of 18 and over wear school uniform and pour alcohol to glasses? LOL

  17. Re:Japanese? Weird?? by NonSequor · · Score: 1

    Actually there is a Japanese law saying that you can't show pictures of pubic hair. However, in the early 90s a magazine published pictures which included pubic hair and said that it was art and should not be censored. The authorities never took action against them and since then others have also broken this law without being prosecuted. So basically it's only technically illegal.

    --
    My only political goal is to see to it that no political party achieves its goals.
  18. Re:Japanese? Weird?? by DeadScreenSky · · Score: 2, Informative

    My (limited) understanding is that most, if not all, of these porn laws were created by the Americans in charge of rebuilding the country after WWII. Extremely sexually explicit Japanese art goes back at least a few hundred years, if not much longer. The American occupation was the first thing to really dampen that tradition at all, AFAIK. Doing some brief googling, an article describing some of this art is here, and a (pretty explicit) example can be found here.

    Not sure I would really say the they 'screwed them up', per se, but the laws are unfortunate, and obviously did nothing to reduce the impact or prevelance of porn there.

    --
    There is no excellent beauty that hath not some strangeness in the proportion. -- Francis Bacon
  19. no rentals for games in Japan either by Spatula+Sam · · Score: 3, Interesting
    Here in Tokyo I've always found it weird that while CD rentals are very popular and perfectly legal, Game rentals are banned and nonexistant. Can you immagine the massive hissyfit the RIAA would throw if people could take their favorite backstreet boys CD home for $2 and copy it to their MD players? And yet the gaming industry here is petrified at the notion that users might be able to try out the latest 100-hour RPG game for a night.

    Maybe the game industry in Japan just has more legislative clout to get the government to give it control over users, but I doubt it given the size of the music industry here.

    I wonder if maybe it's just that historically the reason so many more games are available in Japan is because so many of those games are very, very, crappy. If people are able to rent a game and realize how shoddy it is, maybe they would be discourraged from buying the product. This same thinking might explain the crusade against resale -- a much larger chunk of the gaming pie here consists of titles that are simply worth the wait for buying used.

  20. Re:Japanese? Weird?? by Anonymous Coward · · Score: 0

    Surely there are cartoons that are intentionally made to look like underage, but if you read Japanese language you'll find that none of them explicitly state that they are underage by themselves. Even with school uniform, when the author insists they are not students, they are not.

    Yes, there's a standard disclaimer at the start of every bit of Japanese adult entertainment I've seen which states explicitly that everyone involved is over 18.

    The fact that most of them are clearly prepubescent is irrelevant - they are over 18.

    But frankly, even if it is kiddie porn, at least Japanese kiddie porn doesn't involve actually abusing real live kids like American kiddie porn does. If you're going to have perverts - and, let's be frank, you are - it's surely better to have harmless perverts.

  21. CD rentals in the US by SScorpio · · Score: 1

    There are CD rentals here, at least where I live. They are at a place called the Library. They have a lot of this things called books; however, they also rent out Movies and CDs for around $1/day or so.

    Check it out sometime.

    1. Re:CD rentals in the US by Axeling · · Score: 1

      Actually, over here the library CD's and movies are free to check out (there's a limit how many one can have out at once). The selection's not too shabby either.

  22. Re:Japanese? Weird?? by Anonymous Coward · · Score: 0

    Yeah, all those japanese getting tentacles add-ons, and the massive centauri inmigration are really hurting japan!

    What? Babylon 5 was just science fiction?

  23. Re:Japanese? Weird?? by alan_dershowitz · · Score: 2, Insightful
    How can you assume they are underage, when they are not in photo images of real human, but merely some drawings born from imagination?

    I don't have to assume. Characters in middle school are not adults. characters in school living with their parents are not adults. Characters who have their age explicitly stated as under 18 are not adults.

    Do you insist on 'human rights' of those imaginary drawings?

    No. Where do you draw that inference?

    Surely there are cartoons that are intentionally made to look like underage, but if you read Japanese language you'll find that none of them explicitly state that they are underage by themselves.

    I have been consuming manga for over ten years, and you are wrong.

    Even in the real world, do you know there are places in Tokyo where girls of 18 and over wear school uniform and pour alcohol to glasses?

    Yes. I have been to said places. Have you?

    Look, if you want to argue that in comics, people can be adults and look like children and go to school like children and not drive cars like children in modern Japan, or that in magic comic world age 14* is legal adulthood so there's no problem, that's OK. Some people argue that. I don't care, no kids are being hurt by this stuff being published. But don't say something that isn't true. These comics are clearly depicting minors.

    *14 has been age of consent in Japan until very recently so even then it's not a problem in most cases.

  24. Shiggy says... by Anonymous Coward · · Score: 0

    Shigeru Miyamoto has a mature take on this topic (especially for one who produces games). His solution is to create games *that people want to keep*.

    He says game producers must make games that don't "end" when the main story is finished. Otherwise, It's like a book you never pick up again.

    I'm all for keeping good games.