Why Xbox Failed In Japan

Microsoft's Xbox consoles have become a global hit. But there's one market where they don't work — Japan. Of the 46.9 million Xbox Ones sold worldwide through the second quarter of 2019, just 0.3% of them have been in Japan, according to IDC. Meanwhile, Japanese companies Sony and Nintendo are popular with consumers.

When Microsoft announced it was developing a video game console, the industry was skeptical. In the ’90s, Microsoft was known for its software, not its hardware business.

Almost two decades later, Microsoft’s Xbox has become a popular console, holding its own against Sony and Nintendo.

But there’s one market where the Xbox hasn’t been a hit with consumers — Japan.

When Microsoft released the Xbox in 2001 in the United States, Japan was the gaming juggernaut of the world. It was home to the three big console makers, Nintendo, Sega and Sony, and had the best developers.

Microsoft faced three big challenges launching the Xbox in Japan. It had to convince Japanese developers to make games for Xbox, overcome consumers’ skepticism about the first edition’s bulky design, and make up for lost sales from launching after the holiday period.

Today, Microsoft still struggles to sell consoles in Japan. Of the 46.9 million Xbox Ones sold worldwide through the second quarter of 2019, just 0.3% of them have been in Japan, according to the International Data Corporation.

While Japan is a big market for video games, Dean Takahashi, the lead writer for GamesBeat at VentureBeat, said Microsoft doesn’t rely on Japanese consumers.

“Japan is still down, but they don’t actually need it to make billions of dollars,” Takahashi said.

In a statement to CNBC, Microsoft said Japan is an important part of its global gaming community.

“We’re committed to bringing innovative and homegrown content from Japan’s leading game creators to a global audience,” said Phil Spencer, Microsoft’s executive vice president of gaming, in a statement.

While Japanese consumers prefer Sony’s PlayStation or Nintendo’s Switch, Microsoft’s relationship with its Japanese competitors is changing. Watch this video to learn more about how Microsoft is working with Sony on the future of video gaming.

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Why The Xbox Failed In Japan

[waffles]

this is like selling milk to people with cows

[nlp]

The same reason Japan don't buy Ford, GM, and Chrysler. Japan has Toyota, Honda, and Nissan.

[ravenlorque]

Basically Japan: "Why buy something from another nation if my country sells the same thing?"

[matthewwright]

Meanwhile in Japan:

"Why our guns failed to sell in the US."

[jasonhui]

I remember when i was in Japan and I went to a game store. Nintendo and Sony literally was the entire store while the xbox had like a corner

[kevinbollers]

It's funny how Nintendo rejecting Sony is what created the Playstation and Sony Rejecting Microsoft is what created the Xbox

[muzili]

I almost sweat seeing Sony rejected MS thinking what happened to Nokia...

[s.mothale]

6:26 : The second problem is that the X Box is just to big

Ps5 be like :

[lordmango]

"Microsoft's own team in Japan refused to endorse the Xbox"

It's treason then

[SoftNoize]

Correct title: Why Xbox failed everywhere besides US

[geeet_eth]

Rip to the ones who lined up for the kinect

[renegade]

Comments section be like: It's like selling oil to Saudi Arabia.

[fernando]

Because Nintendo said: " we don't do that here."

[AdarshSingh-qzxq]

Sales figures revealed for ps5 and x box in japan.
PS5-118, 000
XBOX-21, 000
not surprised tbh

[sketcharmstrong]

"It's too big...."
That's what she said.
But in all retrospect, I remember the first xbox being an abomination from the first controller to the size of the console...

[hrdhhac]

*_THE ANSWER IS
*_Nintendo, Sony, BANDAI NAMCO, SQUARE ENIX, KOMAMI, CAPCON,

[dxxa]

Its like when Taco Bell tried to get into México. Just didnt work a week.

[perforongo]

The only reason Xbox gained any foothold at all in Japan with the 360 was because of Sony's missteps. The PS3 was too difficult to program for, meaning that development costs were a lot higher. Many American developers would simply make their game for the 360 then port it to the PS3 later- and a few Japanese developers did the same (like Tri-Ace).

[asdfghjjhgf]

As a Japanese, why I don't buy xbox
1, Because Xbox games are unattractive. Exclusive titles are mostly FPS, murder, and crime games.
2, Because the design of the Xbox is rugged and lame.
3, Because the controller is unnecessarily heavy and large, and difficult to hold
4, X button is for "Yes" and 〇 button is for "Cancel
5, In the first place, we have PlayStation.

[ananastudio]

"The original Xbox was too big"
**Looks at the PlayStation 5**