Game Business Overview in Japan Q Entertainment Shuji Utsumi

Quick Self Introduction Video game career started Preparation for SCE/Playstation launch Corporate staff PS USA launch Corporate, 3 rd 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

Video game career started

Preparation for SCE/Playstation launch

Corporate staff

PS USA launch

Corporate, 3 rd 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

Japan Has Long Game History

Early 80’s Arcade Games Space Invader: Taito Namco, Nintendo, Sega Nintendo NES Super Mario Brothers Donkey Kong Lots of 3 rd party Companies are born. Namco, Konami, Capcom, Hudson

Arcade Games

Space Invader: Taito

Namco, Nintendo, Sega

Nintendo

NES

Super Mario Brothers

Donkey Kong

Lots of 3 rd party Companies are born.

Namco, Konami, Capcom, Hudson

BTW Japanese game market is somehow originated from Jewish initiatives. Taito Cogan Sega Rosen

Japanese game market is somehow originated from Jewish initiatives.

Taito

Cogan

Sega

Rosen

Late 80s-Early90s Nintendo: SNES Zelda, Star Fox, Mario Cart, Sega: GENESIS SONIC The more 3 rd Party Companies Enix, Square, Koei, Tecmo The rise of 3 rd Party Companies in US EA, THQ, Activision, Midway Street Fighter, Final Fantasy, Sports Game, Dragon Quest, NBA JAM, Mortal Kombat

Nintendo: SNES

Zelda, Star Fox, Mario Cart,

Sega: GENESIS

SONIC

The more 3 rd Party Companies

Enix, Square, Koei, Tecmo

The rise of 3 rd Party Companies in US

EA, THQ, Activision, Midway

Street Fighter, Final Fantasy, Sports Game, Dragon Quest, NBA JAM, Mortal Kombat

Mid-Late 90s PlayStation (Another platform from Japan) Game become 3D Sports, Racing, Fighting (Reality Simulation) Crash Bandicoot, Nintendo Cube, Sega Saturn, XBOX

PlayStation (Another platform from Japan)

Game become 3D

Sports, Racing, Fighting (Reality Simulation)

Crash Bandicoot,

Nintendo Cube, Sega Saturn, XBOX

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)

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)

Early 2000 The 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

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

Late 00-Now Nintendo ruled the game again 3 rd party companies bet wrong Battles among toy, electric device, computer The winner is not technology so far. Japanese 3 rd parties are losing especially in technology area against West. Technology lead is disappearing in Japan. Graphic (CG) technology, Network

Nintendo ruled the game again

3 rd party companies bet wrong

Battles among toy, electric device, computer

The winner is not technology so far.

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

Technology lead is disappearing in Japan.

Graphic (CG) technology, Network

Japan country Competitive advantage 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 (3 rd party support) Hardware cost CG technology

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 (3 rd party support)

Hardware cost

CG technology

Observation The Japanese game business has grew with global 1 st 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.

The Japanese game business has grew with global 1 st 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.

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

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

Current Global Scene Big 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)

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)

Another big Change is happening !

Join our Q uest for the future Entertainment