Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

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Game Business Game Business Overvi Overvi ew ew in Japan in Japan Q Entertainment Shuji Utsumi

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Japanese Game Business Overview by Shuji Utsumi, Q Entertainment (Startonomics Tokyo, June 2009).

Transcript of Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Page 1: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Game BusinessGame Business     OvervieOvervieww

in Japanin Japan

Q Entertainment

Shuji Utsumi

Page 2: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Quick Self Introduction

• Video game career started– Preparation for SCE/Playstation launch

• Corporate staff– PS USA launch

• Corporate, 3rd Party, Product acquisition

• Sega of America– Product development: restructuring

• Sega Japan– Dreamcast launch

• Disney– Kingdom Hearts etc.

• Q Entertainment– Lumines, 99 Nights, Guardian Hearts, Genki Rockets

Page 3: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Japan Has Long Game HistoryJapan Has Long Game History

Page 4: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Early 80’sEarly 80’s

Arcade Games– Space Invader: Taito

– Namco, Nintendo, Sega Nintendo

– NES

– Super Mario Brothers

– Donkey Kong

– Lots of 3rd party Companies are born.• Namco, Konami, Capcom, Hudson

Page 5: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

BTWBTW

Japanese game market is somehow originated from Jewish initiatives.– Taito

• Cogan

– Sega• Rosen

Page 6: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Late 80s-Early90sLate 80s-Early90s

Nintendo: SNES– Zelda, Star Fox, Mario Cart,

Sega: GENESIS– SONIC

The more 3rd Party Companies– Enix, Square, Koei, Tecmo

The rise of 3rd Party Companies in US– EA, THQ, Activision, Midway– Street Fighter, Final Fantasy, Sports Game, Drago

n Quest, NBA JAM, Mortal Kombat

Page 7: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Mid-Late 90sMid-Late 90s

PlayStation (Another platform from Japan)– Game become 3D

– Sports, Racing, Fighting (Reality Simulation) – Crash Bandicoot,

Nintendo Cube, Sega Saturn, XBOX

Page 8: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Early-Mid 2000

• The peak of PlayStation– The rapid growth of US and European market and companies

– Japanese companies grew, but lost market share

– Sega / Nintendo had hard time.

• Microsoft joined the platform war– FPS, Sports

• Mobile Business – (i-mode, Another platform but domestic)

Page 9: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Early 2000The rest of the world

• The rise of new business model in game business– PC : casual and serious (US)– PC server based subscription and item sales (Asia,

Korea & China) model was born.• Push from Korean Government• IT Babble

• Internet

Page 10: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Late 00-Now

• Nintendo ruled the game again– 3rd party companies bet wrong

– Battles among toy, electric device, computer• The winner is not technology so far.

– Japanese 3rd parties are losing especially in technology area against West.

• Technology lead is disappearing in Japan. – Graphic (CG) technology, Network

Page 11: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

JapanJapan country Competitive country Competitive advantage is diminishingadvantage is diminishing

Market is getting relatively small in Japan. US and Europe have grown more, so have local companies.– Japan share 30% => 15%

Microsoft is beating Sony– Network service– Development environment (3rd party support)– Hardware cost– CG technology

Page 12: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

ObservationObservation

The Japanese game business has grew with global 1st party (platform holder) – Lots of global players

• Capcom, Square Enix, Bandai Namco, Konami

– But with market maturity, the influence of US platform, the rise of new business model in PC and mobile,   the Japanese software / game industry is now in new challenge.

Page 13: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Trend Examples

• Video game Market is getting matured.– Hollywood like business model now applies to

game business.• Go big or go home

– Contents provider is required to be Specialized or focused to survive.

• US & Europe– FPS, Music games

• Japan– RPG, Nintendo family games

Page 14: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Current Global SceneCurrent Global SceneBig Change is happeningBig Change is happening

Technology matters– Internet, Social– Graphics, AI, Cloud computing, Mobile

Game is now not only for Geeks but for mass audience.

– Nintendo DS and Wii– PC Casual game audience– Mobile SNS (esp. in Japan)– PC Asian market

The new industry players are rushing in the industry.

– China, Korea, East Europe or all over the world– Developers from all over the world– New players from different industry (IT, Web)

Page 15: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

Another big Change is happening!

Page 16: Japanese Game Business Overview (Shuji Utsumi, Startonomics Tokyo, June 2009)

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