MAGAZINE

Japan’s 360 Turnaround

Edge Staff's picture

By Edge Staff

November 25, 2008

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“The main sticking point for Xbox 360 in Japan – the perceived western bias of its game catalogue – is changing quickly. Early on, Microsoft managed to tug a few Japanese franchises away from PS3 exclusivity as developers struggled with the complexity of SCE’s platform. But it’s only more recently that the sea-change has really occurred, following a concerted effort by Microsoft to turn Xbox 360 into the premier JRPG platform.”

By the time that Tokyo Game Show 2008 kicked off back in October, a fair few people had already snaffled a copy of Weekly Famitsu, intended for release the following day. It showed Xbox 360’s hardware sales ahead of PS3’s in Japan for the fourth week in a row (It had remained ahead up until early November.)

It set the tone for Microsoft’s ballsy push into the Japanese market that was to be made evident at the convention. With the price of the console now below that of Wii in Japan, and its gaming catalogue promising tasty software deals with Japanese publishers like Square Enix, can Xbox 360 really conquer a region that previously seemed so very uninterested in what it had to offer?

Xbox 360 has had something of brand-image problem from the outset in Japan – its predecessor was widely ridiculed for looking like a space-crate, and for its awkward weight and size, while its range of titles did little to pander to Japanese tastebuds. Although Xbox 360 has improved in each of these areas, there is still a pervasive distrust of this non-Japanese-designed console, reinforced by hardware failure scandals and compounded by the fact that it can feel like a battle to hear the sound of The Cole Train cutting someone in half with a chainsaw when the console’s disc drive really cranks into action.

However, the main sticking point for Xbox 360 in Japan – the perceived western bias of its game catalogue – is changing quickly. Early on, Microsoft managed to tug a few Japanese franchises away from PS3 exclusivity as developers struggled with the complexity of SCE’s platform. But it’s only more recently that the sea-change has really occurred, following a concerted effort by Microsoft to turn Xbox 360 into the premier JRPG platform. Its booth at TGS placed these games at the front, leaving only a small, adults-only space at the back for western titles – an attempt to present 360 as being specifically for Japanese gamers, helped by the association with Microsoft’s neighbouring booths, Square Enix and Capcom.

In stark contrast to previous years, the area around Microsoft’s stand was far busier than the slim pickings to be had in SCE’s hall, and while gamers still seemed to prefer the two-hour-long queue to play Resident Evil 5 at the Capcom booth over the much shorter one on the 360 stand, few would have missed that the company enjoyed a lot more interest this year as a result of its positioning – both physically and philosophically.

Microsoft gave pride of place at its own stand to Square Enix’s 360 releases Star Ocean 4 and The Last Remnant – the former having no intended release on PS3, the latter an unconfirmed future date for Windows and PS3. Whatever negotiations occurred behind closed doors to ensure the release of Square Enix’s games on Xbox 360, the company was ebullient about the console’s prospects in Japan and emphasised the global reach the platform would give its games.

“We expect the Xbox 360 to increase its Japanese market presence even more in the coming months,” Square Enix Executive Officer Shinji Hashimoto tells us. “There is a growing interest in Xbox 360 among Japanese users, due to the release of familiar titles, the increasing appeal of overseas titles, and the excellent reputation of the Xbox 360’s network services.”

However, success of Xbox 360 in Japan is not necessarily vital to Square Enix’s strategy.

richiemclean's picture

"Sony will NEVER catch the 360 in the US if their deficit keeps increasing." good point....

joel_chima's picture

although sales are increasing, it's by no means dramatic...nintendo and sony's sale will begin to pick up in the long run. it seems that microsoft is satisfying western niche tastes rather than stimulating dramatic support in the east.

John_Ryan's picture

The problem i see is that... with Last remnant and Infinite undiscovery... since they are creating them for "the world" instead of a specific audience may result in them being watered down. Not that they were terrible at all... the received okay to good scores, but the greatness of story and play that so many square-enix rpgs have seems to be lost.

I will eventually play through these games, but they haven't made me jump up to buy them full-priced. I do have high hopes for Star Ocean though, and have nothing but love for Square-Enix.... besides rampant fanboyism that comes with the final fantasy series, I love their games.

Akuma's picture

I thought Edge was meant to be free of fanboys.

360 and PS3 are both viable platforms which both have some great exclusives between them. The "PS3 has no games" thing surely holds no water anymore?

Ozzman_79's picture

"I thought Edge was meant to be free of fanboys."

Is ANY site free of them? That is the price of free speech.

jb1's picture

The fact that a western system can get a foothold in Japan at all is telling of just how poor sony's games library is.

Limanima's picture

Sony game library is weak? I can see why you don't own a PS3. You are totally misinformed.

bobelac's picture

While I'm not a big fan of metacritic it is useful for console comparisons, it's all about the games after all. As of writing PS3 has 124 green(games averaging 75 and over) games and 360 has 212 green games.

Presumably as Sony catch up they will get a bigger slice of the game release pie or if they don't catch up they won't.

jb1's picture

The ps3's games library is incredibly weak with few exclusives of note.

BrianC6234's picture

Wow, awesome. For one month the 360 sold 1000 consoles more than Sony did in Japan. The 360 will be catching up with the PS3 if this keeps up in about 100 years. Bwahaha. Better luck next generation Microsoft.

NickgamertagO1's picture

Brian,

The 360 has a larger lead over the PS3 in the US than the PS3 has over the 360 in Japan (and only adds to their lead annually as the 360 has outsold the PS3 in the US on a year-to-year and overrall basis since the arrival of the PS3. Increased their lead from a little over 2 million to nearly 6 million. Sony will NEVER catch the 360 in the US if their deficit keeps increasing. And the 360 leads the PS3 worldwide, it will take Sony 3-4 years to catch the 360 worldwide at the rate their going, and by that time it won't matter cause this generation will be over. It sounds like Sony is the one who needs better luck next generation, not Microsoft.

Rider_on_the_Storm's picture

I wouldn't exactly call it "Japan's 360 turnaround" as these sales are just temp. The PS3/Wii will continue to outsell the system in Japan, hence both having a larger install base. It's the same with Europe.

gwsmokey's picture

Blip, and short lived... If it was not for the price cut, it would not gain any further ground. However its great system, and it should do great with ww sales trough its life.

bobelac's picture

Microsoft should hit Square Enix over the head with that over sized wallet until a 360 exclusive FFVII remake falls out. That would certainly make these 'my daddy sold more plastic boxes than yours' articles more interesting.

Anyway, I hope both companies sell plenty of boxes in Japan over Christmas. Seems like every Japanese company is making their primary games for the western market these days.

NickgamertagO1's picture

@Bobby,

Did you even read the article? Square said that because the 360 has a larger installed base in the US and Europe combined that it only makes sense for them on a financial basis to support the 360 (not only does Sony lag behind worldwide, but the PS3 hardly has a large installed base ANYWHERE). A company is out to make money, you know do business, and supporting the 360 is a business decision. If the PS3 was dominating or even not being smashed, Square-Enix woudn't be supporting the 360 like they are. Blame the poor performance of the Sony's console for Square's support for the 360, not MS. Don't be so narrow/fanboy minded.

bobelac's picture

Kind of reminds me of when square jumped from nintendo to sony all those years ago, also a purely business decission regardless of whatever cartridge, CD nonsense they spoke about at the time. Of course your right, I didn't think I was making a comment one way or the other. Whatever else Sony have done, as far am I'm concerned they have lost the trust of a good portion of their consumers these last few years, it all started with the specs released along side the shiny red car demo... Those types of tactics only work once.

bluemanrule's picture

The Xbox 360 has to appeal to Japanese gamers while its install base in other areas of the world appeal to the Japanese developers. Microsoft can thread that needle but it needs to minimize the differentiating factors between itself and the PS3. FFXIII Versus and the FFXIII demo must come to the 360. Right now, both are PS3 exclusive and in order to emit parity with the PS3, Microsoft must offer the same things. This shopping season will show Microsoft closing the gap with the PS3.

As for Square, the new IPs (Infinite Undiscovery and The Last Remnant) have both been met with disdain (average metacritic score of 68 for both). Square should simply give Square Fans what they want, more Final Fantasy (FFVII remake and FFXIII Versus on the 360). Essentially, each final fantasy game has vastly different characters and only slightly similar storylines therefore each FF behaves like a new IP. This keeps both NA, Australia, The UK, Japan, and the Square Enix stakeholers very happy.