The Influence of Microsoft on the Video Game Industry in Japan

Is Xbox becoming a dominating force in the video game industry, spelling trouble for Japanese game developers? This question has been on the minds of many, pondering over Microsoft’s impact on the Japanese video game market.

Microsoft, despite being the wealthiest company in the world, has not achieved significant success as a game publisher. All their consoles have been sold in smaller quantities compared to Sony and Nintendo devices, and since the days of Xbox 360, they have lacked compelling titles for casual gamers.

Recently, there have been hints that Microsoft might completely exit the video game market. If their next console disappoints like all the previous ones, we might expect them to lose interest in hardware altogether, or at least relegate it to a side business.

However, Microsoft now owns Activision Blizzard and Bethesda, two of the largest multi-platform publishers globally, making them one of the most important companies in the gaming industry. This is already evident as Microsoft effortlessly has more games in the top twenty for PlayStation than Sony.

This may lead them to make all their games multi-platform, including titles from Bethesda, which theoretically benefits PlayStation 5 owners. However, it also means that one company – a 3 trillion-dollar giant known for acquiring everything and spending money for success – now holds the gaming industry in its hands.

While their devices may be virtually irrelevant, with the rise of streaming, Microsoft will have an undeniable advantage, signaling the end of competition in the gaming industry.

One could argue that the name of the console doesn’t matter as long as the games are the same. However, what is concerning about Xbox is the way the entire company is structured. From the beginning, Microsoft has tried to push aside and ignore Japanese games and companies.

For the most part, they did not forge partnerships with Japanese developers, and Xbox has never been successful in Japan. They quickly realized they couldn’t directly compete with Sony, so they tried the typical business solution: if you can’t beat them, make them irrelevant.

The era of Xbox 360 was primarily about Western-style games, which most Japanese companies struggled to adapt to. It was only during the PlayStation 4 era that Japanese firms returned to their own approach. Everything Microsoft does and all its successes are based on overlooking Japanese firms, which fills me with concern.

Japanese developers create most of my favorite games, and I can’t imagine a world of video games without them. However, we could live without Microsoft, and we wouldn’t lose much.

FAQ:

Q: Why is Microsoft’s acquisition of Activision Blizzard and Bethesda significant for the gaming industry?
A: Microsoft’s ownership of these two major publishers solidifies its position as a key player in the gaming industry, impacting the landscape of game development and distribution.

Q: How does Microsoft’s strategy with Xbox differ from its competitors like Sony and Nintendo?
A: Microsoft’s approach has historically focused less on Japanese games and developers, preferring Western-style titles, unlike Sony and Nintendo, which have embraced a more diverse range of games.

Source: GamesIndustry