The PlayStation has “declined” in Japan, potentially giving Xbox an opportunity

Since the inception of the Xbox, Microsoft has struggled to deliver its gaming platform to the lucrative Japanese market. Nintendo and Sony PlayStation have long dominated the region, alongside PCs, creating a wall that Microsoft has notoriously failed to cross.

The cold shoulder has also had an impact on the Xbox platform in the West. Xbox fans have historically missed many large Japanese franchises, which arbitrarily ignore the platform due to the low reach in the country and low user base. However, there are signs of change.

Microsoft recently picked up games like Dragon Quest XI and the entire Yakuza franchise for Xbox, which have quickly become one of the best JRPGs on Xbox. We also had the Nintendo hit Octopath Traveler on Xbox too, unexpectedly, among other things. However, Sony PlayStation has the legendary Final Fantasy franchise on a near-total lockdown, alongside Persona and games inspired by trendy Japanese anime like Genshin Impact. Such is the reality that if you are a fan of JRPG or anime style games, you are probably considering a PlayStation or Nintendo Switch as your favorite console.

As Microsoft prepares to showcase the Xbox platform at the Tokyo Game Show this month, we have to ask ourselves what, if anything, Microsoft can do to change its fortunes in the region. And now, it might be the best time than any to double down.

Reports suggest PlayStation has seen some decline in Japan

While enjoying a distance, far Larger setup base than Xbox in the region, there have been signs that gamers in Japan have lost interest in the platform, amid an incredibly strong Nintendo resurgence.

A recent report (via Siliconera) suggested that the top 30 games sold in the region were on Nintendo Switch, with no PlayStation games in sight. Ironically, it was Microsoft’s Switch version of Minecraft that topped the rankings in August and marked the first time since 1988 that a single console had taken up all 30 spots on the list. Another report (via January’s GamesIndustry Japan suggested that the PlayStation 5, while initially strong, proved to be Sony’s weakest console launch month after month in Japan for a long time. That’s not to say that the PS5 is doing poorly on the world stage, however The opposite is true.

Sony clearly allocated the bulk of its PS5 stock to regions where it felt it faced a greater threat from Xbox, beating Microsoft in the NPD results in the US and taking pole position in the UK For many months. Microsoft has had a few monthly wins, however, even in these regions. While the reality is that both platforms are severely constrained by the global semiconductor shortage, making silicon for the PS5 and Xbox Series X and Xbox Series S consoles difficult to find. Microsoft has also spent mountains of chips building its Xbox Cloud Gaming platform, which is based entirely on the architecture of the Xbox console. Neither platform is meeting demand, ultimately giving us a potentially obscure picture of how systems might potentially to do.

However, the same report from GamesIndustry Japan, among other sites, refers to a change in attitude towards PlayStation in Japan, both on the part of customers and developers. A few years ago, Sony moved its headquarters to the United States, as well as its corporate structure and culture. The PS5 also notoriously swapped out the action buttons to the Western format, with X replacing O as the primary key on the controllers. Developers had to comply with new rules and processes to comply with the US market as well, which hasn’t always been popular. The ACE Economic Research Institute described the PlayStation brand as in “decline” citing a variety of reasons, from the US-centric attitude of the new PlayStation executives to a collection of little things like missing Japanese subtitles in live streams and a sharp reduction in Japanese support staff. It should be noted that Sony has denied all of these reports, claiming that Japan remains its “most important market,” in comments to Bloomberg.

I have often criticized Microsoft for its Anglo-centric marketing and presentation, which is often blamed for Microsoft’s disproportionate performance in the US, UK, and other English-speaking regions. For PlayStation fans, it’s not ideal to see Sony making the same mistakes. Assuming all reports are accurate and sales trends aren’t just the result of the semiconductor shortage, this potentially gives Microsoft an opening to capitalize if it has the desire.

Xbox Series X | S has seen some recovery in Japan

While still well below sales of the PlayStation and Nintendo Switch, or even previous Xbox consoles, the Xbox Series X and Series S have proven to be enjoying a recovery in Japan and topping sales of Xbox One week after week by a good margin. Microsoft’s previous comments have said that they are seeing “phenomenal growth” in Japan, especially among owners who have never owned an Xbox console before.

Famitsu in Japan tracks console units sold, and if we’re to believe they’re accurate, it looks like the Xbox Series lineup has proven to be far more popular than Microsoft’s previous console. Sleeker hardware probably played a role there, but Microsoft has also worked harder to ensure that basic Japanese franchises arrive on the Xbox, alongside their PlayStation and Nintendo counterparts. Microsoft also picked up its first Japan-based studio at Tango Gameworks, known for The Evil Within, and the upcoming PlayStation exclusive Ghostwire: Tokyo. There’s still a lot of work to be done there, naturally, but Microsoft seems to be turning the tide.

Is this the right time to invest in Japan?

Microsoft is still heavily constrained by the semiconductor shortage, as is Sony. This could work to Microsoft’s advantage, however. With Sony unable to keep up with the demand, it is potentially a good time for Microsoft to start promoting and promoting the Xbox platform as a good alternative to consider for the future, building on features such as Xbox Cloud Gaming and its upcoming high-quality parade. Xbox exclusives stemming from its big Bethesda purchase. Microsoft is heading to the Tokyo Game Show to do just that this month, but that’s just the first brick of a massive monument they would need to build to really change the situation.

It’s like this is a rare opportunity that Microsoft shouldn’t pass up on.

Obviously, the benefits for Western gamers would be significant, with a greater variety of games to choose from, with fewer titles like Persona arbitrarily skipping the platform due to the perception of Japanese gaming fans in its ranks of. clients. Tactical JRPGs also lend themselves incredibly well to cloud play, thanks to their turn-based format, which could also help spark interest in the Xbox platform. Many of these games ignore smartphones on the grounds that they just aren’t powerful enough, after all.

It all comes down to semiconductors, however. It’s all well and good to advertise your platform, but if you don’t have silicon for cloud servers or consoles, there’s no point. Microsoft has the opportunity to start laying the groundwork, however. There are reports that Microsoft is looking for further Japanese studio acquisitions, although we have yet to see them come to fruition.

Naturally, I have a desire to see all of this happen, as a fan of Japanese games and as an Xbox customer. For Microsoft as a company, this has to make sense from a financial standpoint. But with Japanese anime and culture more popular than ever, and cloud-based games in Microsoft’s future, it seems like this is a rare opportunity that Microsoft shouldn’t pass up on.

Help bring the game to life

Halo Infinite beta: everything we know

The Halo Infinite test flight is coming in the near future. Here’s how to sign up for the Halo Insider program and access the beta to help 343 Industries test the game.