The Japanese video game market is the third-biggest video game market worldwide. Some of the most renowned video game companies stem from Japan, such as the hardware makers Sony and Nintendo, which play a dominant role both in the global and in the Japanese console market. The largest part of video game revenue in Japan, however, is generated via mobile games. Due to the expansion of the
, smartphones have become the most popular gaming devices in Japan. The
The mobile game business model
Compared to
handheld and home consoles, smartphone gaming apps benefit from a high potential user base, as consumers do not need to buy dedicated hardware to play games. Games are usually free to play, but often feature the possibility of in-game purchases for additional content, such as items or characters. This type of monetization was pioneered by companies like DeNA and GREE in the mid-2000s and has since become a staple of the mobile gaming industry. Survey figures show that a low or non-existent price is the
most important aspect for smartphone gamers when choosing a particular game. One common feature that incentivizes users to spend money are so-called
gacha mechanics, which let players receive items in a randomized fashion.
Popular mobile games
The Japanese gaming app market is dominated by a small number of hit titles that managed to stay highly successful over many years. Titles such as “Puzzle & Dragons,” which was released by GungHo Online Entertainment in 2012, “Monster Strike,” which was released by Mixi in 2013, or “Fate/Grand Order,” which was released by Aniplex in 2015, regularly feature among the
best-selling mobile games. According to a survey, puzzle games are the
most commonly played smartphone game genre. Other popular genres include location-based games, music games, and various types of role-playing games (RPGs). In the mobile gaming market, domestic companies continue to play a dominant role, with the majority of recent best-selling titles coming from Japanese companies. As can be seen from the success of titles such as “Knives Out” and “Genshin Impact,” however, international competitors, especially from China and South Korea, have also established themselves in the Japanese market.
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