Finding Opportunity in the Japanese Gaming
Market
There is no denying that the Japanese video game
market has suffered from the downturn in the economy. Enterbrain estimates game
sales in Japan for 2009 were $5.4 billion, down 6.9% from 2008.
Dean Takahashi noted in a recent VentureBeat article:
In Japan, unit sales fell 2 percent
(a 5 percent decline in console software units and a 1 percent decline in
portable game software. While the recession gets some of the blame, so does the
shrinking PlayStation 2 software market, which saw a 57 percent decrease across
the top global markets (56 percent down in the U.S., 67 percent down in the UK,
and 55 percent down in Japan).
According to the Japan External Trade Organization, also known as
JETRO, there were several reasons for the downturn in video game sales last
year:
Overall console sales
were down
Retail hardware prices were cut
On the software side,
there simply was a lack of big title hits available
Moving
Forward
Moving forward, JETRO sees hope on the horizon, noting
that while the Japanese market did decline last year, they believe
Japanese game companies are looking forward to new opportunities in
several areas:
Moving beyond mainstream video game users and targeting new market
demographics
Exploring and expanding into international markets
Developing new segments including expanding online and mobile
games
Japan's
Emerging Mobile Social Gaming Market
This last point of mobile social gaming is an area where
Japan has already seen growth. According to a recent study conducted in Japan by
Mobile Marketing Data, 75.4% claimed they accessed social media sites through
their mobile phones and not from their PCs. Only 2 % accessed social networks
exclusively from their PC.

Source: Mobile Marketing Data
There are a number of Japanese companies
targeting the mobile social gaming market, such as DeNA. DeNA
has a mobile game portal, Moba Ge Town (Mobile Game Town), with over 250 games
available. Tomoko Namba, the CEO of DeNA will be speaking on a panel at the
upcoming GameBeat Conference during GDC, on March 10th, 2010.
Also, back in late January, Square Enix
announced they raised close to $400 million through a convertible bond. Many believe the
company is looking to use the money to help fund new games and acquisitions in
the social gaming space, given past comments made by Square Enix's President
and CEO, Yoichi Wada.
JETRO at GDC
Yes, Sony has been struggling to rectify its
brand and Nintendo is working on how to keep the liquid gold flowing, but there
are a number of companies that remain in the shadows of the big Japanese
powerhouses.
JETRO is working with a number of established Japanese
companies who are looking for partners. Part of the organization's activities
includes assisting a group that will be taking part in the Game Connection
during the Game Development Conference, in San Francisco, March 8 - 10, 2010.
Following are the Japanese companies attending
GDC this year and looking for partnership opportunities. (Contact
information for scheduling appointments during GDC is provided at the end of
the article).
Acquire Corp.
For the past 10 years, Acquire has been one of
the developers that has formed the backbone of Playstation and Playstation 2
development in Japan. Acquire still continues to create highly original titles
for the Playstation 3, Xbox360, and PSP.

ARC SYSTEM WORKS
ARC SYSTEM WORKS is a well-known developer of
action games, particularly in the 2D fighting game genre. With a 20 year
history of developing games for leading publishers, ARC SYSTEM WORKS has a wide
range of OEM development projects, from small to large, including an as-of-yet
unannounced project for a major U.S. publisher.



Bauhaus Entertainment (DigitalScape Co.)
Bauhaus Entertainment is the game development studio
for DigitalScape. As a production studio, Bauhaus develops CG for all the major
gaming platforms. The company's services also support real-time 3D model
graphics, modeling and animation, and engineering core game systems.
Compile Heart Co., Ltd.
In Japan, Compile Heart is recognized as one of
the leaders in both female-oriented games and strategy RPG games. The company
develops between 30 and 40 titles a year for the Japanese market. For the US
and European markets, Compile Heart co-develops games, especially RPG and
Adventure games, with Capcom, Sega, Koei, Nippon Ichi, Gust, and Red
Entertainment.

CyberStep, Inc.
CyberStep, Inc. has developed an online social
gaming service that allows players from all over the world to communicate with each
other. Creating animated characters with customizable game functions allows
players to create their own original characters.

D.A.G INC. (Digital Artists Guild)D.A.G Inc. is an established CG production
company headquartered in Tokyo. For over 12 years the company has
specialized in video game art production including modeling, animation, concept
art, matte painting, compositing, pre-rendered and in-game cinematics, as well
as other services.
D.A.G Inc. maintains studios in Tokyo and
Hakata, Japan, as well as Los Angeles, California.
Digital Works Entertainment, Inc.
Digital Works Entertainment has been developing
games for major publishers for over 10 years. With a development studio of
170 people, Digital Works is a multi-platform studio that specializes in
graphics, animation and programming.
G CREST Inc.
GCREST is an online game developer and
publisher. Focused on their game portal site, G CREST provides avatar chat
service, social MMOs, MMORPGs, simulation and mobile games.

Landho Co., Ltd.
Besides having extensive experience in
developing Wii, PS2, PS3, XBOX360, PSP, DS, GC, PC Flash, iPod, iPhone,
and Japanese cell phone applications, Landho also provides production services
for television and radio programs.

MagicPictures, Inc.
MagicPictures, Inc. is an award-winning visual
effects studio which started in Tokyo in 2000. For the past ten years, MagicPictures
has provided high quality realistic computer graphics animations and visual
effects for game cinematic, TV commercials, films, and music videos.
To create its high-quality CG animations,
MagicPictures has developed its own internal animation software. Having experienced digital artists and advanced R&D, MagicPictures has been
offering unique solutions for a wide range of game cut scenes and cinematics on
various platforms. MagicPictures recently opened a visual effects studio in Los
Angeles.
NetDimension Corporation
NetDimension has developed the MatrixEngine, a
3D authoring solution and game for game developers. There is also a playback
engine that works on a PC, Android, iPhone, or any mobile devices. NetDimension
has been working in the avatar and online game community in Japan for many
years.
The MatrixEngine helps game developers reduce
costs for both development and maintenance. MatrixEngine enables creators to
visualize their idea with less programming skills, and this designer-friendly
tool is also used for prototypes.

VANGUARD
VANGUARD is a console, mobile and PC online
games development studio. VANGUARD also has experience in different genres of
game development including RPG, Action, Puzzle and Strategy, etc. Clients
include Namco Bandai Games, SEGA and other top Japanese publishers.

Set Up Meetings During
GDC
To arrange meetings with any of these
developers, please contact:
Sonoko Saito (Meeting Coordinator) sonopee@cox.net
Location:
JAPANBOOTH at Game Connection 2010
(WEST Exhibit Hall 2nd Floor)
Moscone Convention Center
747 Howard Street
San Francisco, CA 94103
Game Connection Meeting Room Hours:
March 8, 2010: 09:00AM-06:00PM
March 9, 2010: 09:00AM-06:00PM
March 10, 2010: 09:00AM-06:00PM
** To access the Japan/JETRO booth, you must
register as a visitor for Game Connection 2010. For more information about Game
Connection please visit:www.game-connection.com
** You need to have an expo pass to attend the
expo at GDC 2010 and must register as a visitor for GC 2010. For more information about GDC and GC
registration for the expo, please visit: www.gdconf.com
www.game-connection.com
Japan External Trade
Organization (JETRO)
The Japan
External Trade Organization (JETRO) is a non-profit government related
organization that promotes trade and investment between Japan and the rest of
the world. Our six U.S. branches are located in Atlanta, Chicago,
Houston, Los Angeles, New York and San Francisco.
For more
information, please go to: www.jetro.org/gc2010
Learn more
about the Japanese entertainment industry at: www.jetro.org/epj
Any questions or concerns, please email us at:
epj_la@jetro.og.jp