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Analyze This: Does Microsoft Need Japan to Make the Xbox 360 a Hit?
"For all the talk of supporting the Japanese market with relevant titles, the [Xbox 360] launch list -- and even today -- shows a dearth of titles that will entice the Japanese game player. Ninety-Nine Nights and Final Fantasy XI are a start, but what they need are some exclusive must-haves that would drive the Japanese consumer to the console. "While Microsoft does not need to be number one or two in Japan -- and ABI doesn't expect them to be -- they really need to grow their market share to at least a respectable number, as this is important to the developers who live and work in Japan.
"That being said, Japanese developers realize that a good chunk of their success is reliant on North America and Europe, and that the Japanese market, while still important, has been shrinking over the past few years. So, regardless of how Microsoft fares in Japan, Japanese developers will continue to support the Xbox 360 in the other geographies. "While regional loyalties are important, game developers are businesses first, and they won't ignore the 80% of the worldwide market these two regions command for consoles shipped, especially if Microsoft attains a number one or two position. "Still, the home field advantage of Nintendo and Sony can't be underestimated, and may prove ultimately insurmountable for Microsoft. I think [Japanese developers] will continue to pay honor to their developer partners there by showing continued effort, but internally may throw their hands up if they don't see traction over the next 12-to-24 months."
Got a business-related question concerning the games industry that you would like to suggest for discussion in Analyze This? Are you a professional analyst who covers the market and would like to take part in this column? Feel free to send an email to howardhwen@gmail.com. |
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Features
Mike Wolf, 
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