Japanese Tired of Video Games? GREAT Discussion...

[Shola Akinnuso]

Thanks to TimHardaway on the PS2 boards for bringing this topic to light. I'd love to hear some feedback about this:

Japanese Show Waning Interest in Video Games

By Mark Magnier, Times Staff Writer


TOKYO -- Kenji Suzuki, a 19-year-old restaurant worker, used to play video games five or six hours a day. Starting in elementary school, he developed a passion, acquired four different hardware systems -- PlayStation 2, Famicon, Super Famicon and Game Boy Advance -- and spent a small fortune on software titles.

Now he's lucky if he plays an hour a week. A demanding job, a newfound interest in playing soccer -- the real kind -- and learning new songs on his guitar are all part of the change.

"I'm not as interested anymore," he said astride a mountain bike in front of a video game promotional display in the Akihabara neighborhood, Tokyo's electronics district.

Suzuki and thousands like him are creating a huge short-circuit in the video game industry here, which at its peak accounted for one-third of total world sales and provided what was widely considered among the hippest activities for young Japanese.

Though the Japanese video game market is hardly in danger of totally drying up -- and there's still enough momentum to ensure that the industry can make money when a new generation of consoles comes out -- growth has slowed so sharply that leading analysts speculate it may have permanently downshifted.

Preliminary industry figures show that combined hardware and software sales fell for the second consecutive year in 2002 to $4 billion, down 2.4%.

"Of course the market won't shrink to zero," said Shunji Yamashina, analyst with Morgan Stanley Securities in Tokyo. "But video games just aren't cutting edge anymore. Kids have a lot more options now."

Arguably, the biggest factor contributing to the industry's slump in Japan is a demographic transformation that is creating one of the most rapidly aging populations on the planet. In other words, there is a steady decline in the number of young people here.

But more alarming to some is that even young Japanese don't seem to have the passion for games that their age groups did even a few years ago.

A survey by Bandai, one of Japan's largest toy firms, found that video games slipped from fifth place in 1995 to ninth place in 2000 in a survey of favorite activities among children up to age 12 -- with play-acting as action heroes, mini-cars, bicycles, balls and blocks ranking higher.

And the trend has only intensified, analysts say. Japanese in their mid- to late 20s continue to enjoy games, having acquired the habit in their early years. This in part explains the large number of video game sequels as software firms try to hold the attention of this group with new versions of familiar titles.

But people in this age bracket also have more responsibility and new interests competing for their time and dollars.

A commercial recently aired in Japan tries to hang on to their loyalty. The ad shows a tired salaryman in his late 20s eating a bowl of noodles in a restaurant by himself, exhausted after a long day of slogging at the office.

"Let's remember the dream of those days," it says, cutting to a shot of young people queued up to buy the latest game.

The ad hasn't worked on Manabu Mitsumura, a 23-year-old cook in a Chinese restaurant.

"I go to work at 8 in the morning and get home as late as 11," Mitsumura said. "I guess when you get into your 20s, you become much more interested in a girlfriend than staying at home with your game set."

Some blame such attitudes on the lack of innovative blockbusters in recent years. "There really haven't been any exciting games coming out for a while," said game analyst Masashi Morita of Okasan Securities. "It's just been sequels and sequels."

The tougher times and industry dynamics have sparked consolidation among Japanese game publishers. Two of the biggest players, Square Co. and Enix Corp., recently merged in a bid to become more cost-efficient. Smaller companies are under even greater pressure with production expenses rising and prices falling. Rumors crop up daily on the latest merger possibilities.

Analysts say that more and more, only the No. 1 seller in each gaming category -- role-playing, auto racing, sports and so forth -- can expect to prosper, with lesser lights falling by the wayside.

"The weak will be weeded out," said Yamashina of Morgan Stanley.

Sega Corp., another major player in Japan, does well in the U.S. market but faces fierce competitive pressure from Electronic Arts Inc., the dominant maker of sports titles. Sega's failure to mount a significant challenge to Redwood City, Calif.-based EA led it to revise its earnings forecast downward in November.

In Japan, Sega also has fared poorly against Nintendo Co. and Sony Corp., although Sega's strength in video parlors has helped counteract its weakness.

Nintendo, the oldest and most widely recognized game firm in Japan, is having problems too. The company has 2.04 million consumers who bought its GameCube console, compared with 11.36 million who purchased Sony's PlayStation 2.

Nintendo has held its own by concentrating on the market for elementary school children. But its hope of expanding beyond this niche to challenge Sony in the teen and young adult sectors hasn't panned out.

Its hand-held Game Boy Advance console has done well with children as a platform for playing the popular "Pokemon" titles. Parents, however, haven't sprung for other games.

"It's really become a one-time present for kids," Morita said. "Nintendo failed to attract adults, so it's going to be a tough battle ahead. Their growth is limited."

Meanwhile, Microsoft Corp., the only non-Japanese console maker, has made little traction despite its enormous buildup and brash publicity. A distant third in the console market, it sold just 340,000 Xbox consoles in Japan in 2002. The Redmond, Wash., company last week tried to stir up interest among Japanese buyers by launching Xbox Live, its online game network.

On a recent day, Akira Nagai, a 21-year-old college student, glanced at a promotion for Xbox Live in front of one of the electronics stores at Akihabara.

"I'm not interested in Xbox. It just doesn't have any games I want to play," he said. "I'll stick with PlayStation 2, which has sequels of the games I've been playing a long time."

Yet even Sony is starting to see a drop in console sales. In November and December, PlayStation 2 sales fell 27% from a year earlier, to 940,000 units.

Kenji Suzuki, the restaurant worker, suggests why. "It's not that cool staying at home playing by yourself," said Suzuki, who now devotes more of his money to his mobile phone. "I'd rather spend more time with my friends."

*

Hisako Ueno in The Times' Tokyo Bureau and Times staff writer Alex Pham in Los Angeles contributed to this report.
...And I beat that with a friend. Pretty graphics and deep stories alone don't make the world go round, folks. Gaming shouldn't be a solitary adventure. Unless there's a marked change in development attitude, gaming's going to make a LOT of money in the next two years - but I think it will run it's course.

[Frogacuda]

I think they hit the nail on the head when they said that games aren't grabbing young people. Many people are going to outgrow games eventually. New games aren't as easy for a child to grasp as the Ataris we grew up with. A 6 year old isn't going to want to fiddle with a camera. GBA's all they're holding onto.

[Shola Akinnuso]

I don't know. I saw what looked like a 10 year old boy in Best Buy completely demolishing Ratchet and Clank. He *certainly* looked like he knew what he was doing. In fact, I'm *amazed* by the younger generation's ability to pick up what would've been complex games for us, tackle them, and move on...

Also, I thought I'd leave my response from the boards:

The article makes a lot of sense. I'm 28, and don't nearly play as much as I used to. Hell, I've become more a collector of videogames than an actual 'gamer' lately. In fact, most of my 20-35 year old pals who were badge-wearing hardcore gaming geeks throughout college simply don't have time to play as much anymore. Other than, perhaps, the worldwide potential of an Xbox Live online Capcom vs. SNK 2, I can't say I've really been excited about anything past or coming...

Bringing us to another point: Co-op gaming. It's no secret that the decline of gaming culture in Japan is, perhaps, due to the decline of games that emphasized competition and comarderie. The death of the U.S. (and possibly the waning Japanese arcade) limits the amount of time spent with friends doing more than just playing Street Fighter and the like.

Admittedly, while I considered myself the hardest of hardcore gamer, there's something to be said about the zenith of gaming in both cultures having something to do with fighting games. I'd bring my then popular Neo Geo to the dorms for a little Samurai Showdown, and the entire hall would come in for all night battles. Friends were made, and some of those binds still hold true today. I played my Final Fantasy and my Contras, true, but it's the Street Fighters and Mortal Kombats that made the difference. So, what happens when the gaming culture shifts from a communal based system to something that pushes solitary confinement with little-to-no reward? Hell, I'd rather be paint-balling, playing basketball, or sparring with my pals in the real world. Even my Girlfriend and I go at it in SSX Tricky on a regular basis. Metal Gear is fantastic, and Mario is just as punchy as ever, but who wouldn't rather be bragging about high scores in Raiden Project, or showing off that sick new combo in Street Fighter?

The last game I absolutely *loved* was Halo...

...And I beat that with a friend. Pretty graphics and deep stories alone don't make the world go round, folks. Gaming shouldn't be a solitary adventure. Unless there's a marked change in development attitude, gaming's going to make a LOT of money in the next two years - but I think it will run it's course. Arcade thinking needs to make a serious comeback.

--Shola Akinnuso
http://www.popcultureshock.com

[Clash!]

A survey by Bandai, one of Japan's largest toy firms, found that video games slipped from fifth place in 1995 to ninth place in 2000 in a survey of favorite activities among children up to age 12 -- with play-acting as action heroes, mini-cars, bicycles, balls and blocks ranking higher.

What a bunch of weirdos.

[skullkid]

This has been talked about for the last few years.
What gets me is that they say there is a lack of innovation, yet
they still buy the latest Dragon Quest, Pokemon, and Final Fantasy in droves.

[Jeremy]

Well, in all fairness, the U.S. gaming market is just as hypocritical there Skullkid.

[Andy]

Originally posted by Clash_Master
What a bunch of weirdos.

[Clash!]

You know its kinda funny. Just as games are starting to get wide appeal to everyone in the U.S., Japan starts to back away. Maybe they will be jumping on the next big things, like playing with Blocks, Balls, and play-acting as action heroes.

[kabuki]

Half that article is devoted to repeating how grown-ups have more responsibilities and less time for gaming. Well shit, that's a suprise! Oi...

I agree with Shola in that co-op games like HALO need to come around more often. I adore co-op HALO, I could play it forever. The problem with gaming at an older age is that you want to spend time with friends, and you also want to play solo games, but when it comes to choosing one over the other friends almost always win. More great co-op games would help the industry, I think

Kenji Suzuki, the restaurant worker, suggests why. "It's not that cool staying at home playing by yourself," said Suzuki, who now devotes more of his money to his mobile phone. "I'd rather spend more time with my friends."

I hate cell phones.

[Jeremy]

Clash, games STARTING to get wide appeal here in the U.S.? It's been that way for years, bucko.