COMPETITIVE LANDSCAPE
PlayStation loses its leadership to Nintendo, while fragmentation increases
In 2024, the competitive landscape in video games in Japan remained fragmented, with the top five companies accounting for 30% of value sales, which is below the Asia Pacific average of 45%. Concentration decreased between 2019 and 2024, as the top five companies together held a 37% share of value sales in 2019.
Joy Nice Games and First Fun drive sales with advertisements and influencers
In mobile games, two Chinese developers, Joy Nice Games with its Legend of Mushroom, and First Fun with Last War: Survival, were amongst the best-sellers in Japan in 2024. Their success was attributed to a marketing strategy that emphasised engaging and compelling digital advertisements, as well as the use of local influencers to tailor their promotions to the Japanese market.
Dragon Quest III HD-2D success driven by kidult nostalgia
The rise of the kidult trend has had a notable impact on console games software, exemplified by the success of Dragon Quest III HD-2D in 2024. A reimagining of the 1988 Family Computer game, the title has resonated with adult players seeking a nostalgic connection, as evidenced by widespread absences from work and school upon its launch.
Established franchises dominate mobile games through brand recognition and partnerships
In 2024, mobile games in Japan was characterised by a concentration on established franchises, with perennial bestsellers like Monster Strike, Fate/Grand Order (FGO), Umamusume Pretty Derby, and Puzzle & Dragons maintaining their top ranks. These titles capitalise on recognised brands and intellectual properties to ensure a consistent user base.
Nintendo to release Switch successor with enhanced social features
Nintendo has announced the forthcoming release of the Nintendo Switch 2 in June 2025, a development that is poised to have a significant impact on video games. The new console will be compatible with most existing Switch games.
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Overview:
Understand the latest market trends and future growth opportunities for the Video Games industry in Japan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Video Games industry in Japan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Video Games in Japan report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Video Games in Japan?
- Which are the leading brands in Video Games in Japan?
- How are products distributed in Video Games in Japan?
- How is the rise of e-commerce impacting the retail landscape and traditional outlets?
- What are the key safety regulations to observe in Japan?
- How has retail disruption following COVID-19 and national lockdown impacted sales?
- Where is future growth expected to be most dynamic?
- Is it more important to appeal to children or adults?
Video Games in Japan - Category analysis
KEY DATA FINDINGS
Growth for video games software unable to offset decline for video games hardware
The decline of video games amid economic concerns
Palworld success sparks intellectual property debate and Nintendo lawsuit
Video games software to lead growth over the forecast period
Sustainability set to gain further traction
Continuing to leverage IPs to engage consumers
Mobile games may face headwinds
Switch 2 release likely to boost sales for Nintendo
Gaming headsets likely to be limited to core users
PlayStation loses its leadership to Nintendo, while fragmentation increases
Joy Nice Games and First Fun drive sales with advertisements and influencers
Dragon Quest III HD-2D success driven by kidult nostalgia
Established franchises dominate mobile games through brand recognition and partnerships
Nintendo to release Switch successor with enhanced social features
Retail e-commerce outshines offline retail in video games due to video games software
Consumers still turn to physical stores for video games hardware
Toys and Games in Japan - Industry Overview
Even inflation cannot stop growth for traditional toys and games, due to spending by kidults
Traditional toys and games shows growth, while video games declines
One Piece Card Game benefits from the kidult trend and popularity of the related comic
Palworld's success on Steam faces controversy due to similarity with Pokémon
Video games will continue to lead toys and games, despite anticipation of modest growth
Pokémon Trading Card Game app launch expected to also boost sales of its physical game
Switch 2 launch in 2025 anticipated to perform well
Gundam likely to drive growth in traditional toys and games, but mobile games may face headwinds in video games
PlayStation loses its lead to Nintendo amid the changing preferences of gamers
China-based games developers' marketing tactics drive success for mobile games
IP partnerships impact brand rankings, with Sumikkogurashi PC performing well
Retail e-commerce is the leading sales channel and exhibits strong growth
Offline retail continues to have its place, particularly for sales of traditional toys and games
Toymakers prioritise direct-to-consumer for closer consumer contact
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Video Games
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- Hand-Held Consoles
- Static Consoles
- Gaming Headsets
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- Computer Games (Physical)
- Console Games (Physical)
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- Computer Games (Digital)
- Console Games (Digital)
- Online Games and Subscriptions
- Mobile Games
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- Console Games (Physical)
- Console Games (Digital)
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- Computer Games (Physical)
- Computer Games (Digital)
- Online Games and Subscriptions
- Mobile Games
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- Computer Games (Game Sales)
- Console Games (Game Sales)
- Online Games and Subscriptions (Game Sales)
- Mobile Games (Game Sales)
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- Computer Games (In-Game Purchases)
- Console Games (In-Game Purchases)
- Online Games and Subscriptions (In-Game Purchases)
- Mobile Games (In-Game Purchases)
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Video Games
This is the aggregation of video games hardware and video games software. Electronic/computerised educational toys such as Speak & Spell and LeapFrog are excluded from video games and included under pre-school. Video gaming population refers to the population that played a game at least once in the last 6 months on any covered platform. This includes players who have not spent any money on game purchases or in-game content purchases.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Video Games research and analysis database.
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