Take a Look at the 546.8 Billion Yen Market

On March 25, CyberZ released a research report on trends in the smartphone gaming market. The report stated that in 2013, the total size of Japan’s domestic smartphone gaming market reached 546.8 billion yen (approximately 33.3 billion RMB), representing a 78% increase, with native games contributing significantly to this growth.The report also noted that the Japanese smartphone gaming market is projected to expand to 658.4 billion yen (approximately 40 billion RMB) in 2014.

 

 

Just how big is this pie, anyway?

In 2013, the Japanese domestic home console game market was worth 253.7 billion (approximately 15.4 billion RMB), so the figure of 546.8 billion is roughly double the size of the Japanese domestic home console game market and accounts for about half of the entire Japanese domestic game market.

 

Which pastry chefs made the cakes?

Some craftsmen have been in this industry since the very beginning, but many more have switched careers to this field. There are three main categories:

1. Traditional Japanese game developers, who hold a number of strong IPs and have extensive experience in game development; examples include Square Enix and Bandai Namco.

2. Online game companies—their strengths lie primarily in game operations;

3. Social media app providers, which have a massive user base and inherent media advantages. For example, LINE.

The arrival of these developers has also breathed new life into the market and brought many new creations, particularly in the mobile gaming sector.

 

 

What is this cake made of?

Unlike in China, Japan’s mobile gaming market consists of two major categories: native games and mobile browser games. Native games are what we traditionally think of as mobile games (they have installation packages and run on specific platforms);mobile browser games are a somewhat unique concept, specifically referring to games played through a mobile browser; they were previously found on feature phone platforms and are now partially available on smartphone platforms as well.

■ Native Games — The Flavor of Popularity

In 2013, the Japanese mobile game market was valued at 317.8 billion yen, a 137.2% increase from the previous year. It accounted for 58% of the total Japanese mobile game market.

With the rapid proliferation of smartphones, the mobile gaming market has also expanded at a breakneck pace. In particular, app stores such as the App Store and Google Play have seen a steady increase in free-to-play games with in-app purchases. The variety of games continues to grow, ranging from casual puzzle and match-three games to hardcore role-playing games.There are easy-to-pick-up puzzle-matching games, as well as titles themed around the Three Kingdoms and Japan’s Warring States period, not to mention established developers leveraging their powerful IPs. These offerings have captured the attention of many core gamers while also gaining support from new female users and middle-aged and older players.

In addition, thanks to game companies’ successful overseas operations, many major titles are aimed at a global audience. Through social media, review sites, television commercials, and smartphone ads, these games have rapidly gained a large number of users worldwide.

In 2013, in addition to acquiring relatively rare virtual items, users were widely motivated to pay to enhance their in-game characters’ attributes and to continue playing through subsequent content.At the same time, game companies actively implemented various measures to ensure user retention, turning users into loyal players who would eventually become paying customers. It is precisely for this reason that the market for native smartphone games has been expanding rapidly.

It is against this backdrop that the Japanese mobile game market has grown by 137.2% from last year’s 134 billion yen to reach 317.8 billion yen, demonstrating rapid growth.

 

■ Mobile Browser Games —— A Touch of Nostalgia

In 2013, the Japanese mobile browser game market was worth 229 billion yen, a 32.2% increase from the previous year.

In 2009, browser-based games—primarily social games—experienced rapid growth. At that time, most mobile devices were still feature phones, and mobile browser games constituted the bulk of the mobile gaming market.By 2013, many users had switched to smartphones, leading to a significant decline in the user base for mobile browser games. However, some core users remained loyal to mobile browser games even after making the switch to smartphones; in fact, the average monthly spending among browser game users was slightly higher than that of native games. Today, browser games are primarily centered around card-based combat.

Smartphone users primarily access games through the App Store and Google Play.Native apps offer numerous advantages, such as superior graphics, enhanced usability, and greater resilience to network conditions, making them more popular among users. As a result, a clear trend is emerging in the short term: many game companies that have focused on mobile browser games will gradually increase their investment in native app development.

From a long-term perspective, as HTML5 technology becomes more widespread, it opens up a new possibility: in environments with good internet connectivity, users can play games that combine entertainment and high performance simply through a browser, regardless of location or device; at the same time, it offers excellent internet performance.If this becomes a reality, the increasingly struggling mobile browser games will still have the power to mount a comeback against native mobile games.

 

What will the cake of the future look like?

 

In 2014, the total market size in Japan is projected to reach 658.4 billion, with a growth rate of 20.4 percent.

In the mobile gaming sector, growth is expected to accelerate further as smartphones become more widespread. In early 2014, various gaming companies also launched large-scale promotional campaigns through television commercials to attract a wide user base.

In mid-2014, these new types of real-time multiplayer games also showed signs of gaining popularity. Therefore, this niche segment of mobile online games is expected to see solid growth.

On the other hand, in the mobile browser game market, the trend of users switching from feature phones to smartphones is now irreversible. However, the steadfast support of core players remains a key factor in the market’s growth.

Against the backdrop of the rapid proliferation of smartphones, the smartphone gaming market will continue to maintain a high growth rate. Furthermore, Japanese gaming companies are now making a significant impact not only in the domestic market but also on the global stage. Given this, it is highly likely that smartphone gaming will evolve into a sector within Japan’s content industry that possesses strong international competitiveness.

 

(This article was compiled by Game Teahouse. Please credit the source if you wish to repost it.)

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原创文章,作者:茶馆小二,禁止转载:https://youxichaguan.com/en/archives/213517

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