Market Insights Advertising & Media Media

Games - Japan

Japan

In Japan, revenue in the Games market is projected to reach €44.47bn in 2024.
Revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 5.56%, leading to a projected market volume of €58.28bn by 2029.
In a global context, the majority of revenue will be generated United States, with an expected figure of €118,800.00m in 2024.
Within Japan's Games market, the number of users is expected to reach 66.0m users by 2029.
User penetration is forecasted at 48.5% in 2024, increasing to 55.3% by 2029.
The average revenue per user (ARPU) in Japan is expected to amount to €1,551.00.
Japan’s Games in the Media market is witnessing a resurgence in mobile gaming, driven by innovative storytelling and immersive experiences unique to its cultural context.

Key regions: United Kingdom, Germany, India, United States, South Korea

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Analyst Opinion

The Games market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese consumers have a strong affinity for gaming, making it one of the largest and most lucrative markets in the world. The popularity of console gaming remains high, with a strong preference for home gaming consoles such as PlayStation and Nintendo Switch. Mobile gaming has also gained traction, with a large percentage of the population owning smartphones and engaging in mobile gaming. Additionally, Japanese gamers are known for their love of role-playing games (RPGs) and strategy games, which have a dedicated and passionate fan base.

Trends in the market: One notable trend in the Japanese Games market is the rise of esports. Esports tournaments and events have gained significant popularity, attracting both professional players and enthusiastic spectators. This trend has led to the emergence of esports teams and organizations, as well as increased investment in esports infrastructure. Furthermore, the popularity of streaming platforms has also contributed to the growth of esports, as gamers can now watch their favorite players and teams compete in real-time. Another trend in the market is the increasing focus on virtual reality (VR) and augmented reality (AR) gaming. Japanese gaming companies have been at the forefront of developing innovative VR and AR gaming experiences, capitalizing on the country's advanced technology and gaming expertise. This trend has not only attracted local gamers but has also garnered international attention, as VR and AR gaming continues to evolve and improve.

Local special circumstances: Japan has a unique gaming culture that is deeply ingrained in society. Gaming is not only seen as a form of entertainment but also as a social activity. Many Japanese gamers enjoy playing games with friends and family, either in person or through online multiplayer modes. This social aspect of gaming has contributed to the strong community and fan base that exists in Japan. Furthermore, Japan has a rich history of game development, with many iconic and influential game franchises originating from the country. This legacy has fostered a sense of pride and loyalty among Japanese gamers, who continue to support and embrace both domestic and international game releases.

Underlying macroeconomic factors: Japan's strong economy and high disposable income levels contribute to the growth of the Games market. The country has a large population with a high proportion of young adults, who are often the primary consumers of video games. Additionally, Japan's advanced technology infrastructure and widespread internet access provide a solid foundation for the gaming industry to thrive. In conclusion, the Games market in Japan is experiencing significant growth due to customer preferences for console and mobile gaming, the rise of esports and VR/AR gaming, the unique gaming culture in the country, and the underlying macroeconomic factors that support the industry. As the market continues to evolve, it presents opportunities for both domestic and international game developers to tap into the lucrative Japanese gaming market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Games market, which is divided into Physically Sold Video Games and Digital Video Games. Physically Sold Video Games comprises revenues associated with in-person purchases of video games in retail stores. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.