• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Japanese smartphone game market grew 5 times between 2011 and 2012 to $5.1 Billion

sublimit

Banned
http://www.gamasutra.com/view/news/198083/Smartphone_game_sales_are_rocketing_in_Japan.php

A new study has shed some light on how quickly the mobile game space is expanding in Japan, suggesting that sales of smartphone games in the country grew by more than five times between 2011 and 2012.

According to the Mobile Content Forum, and as translated by industry consultant Serkan Toto, smartphone game sales reached roughly 260 billion yen ($2.7 billion) in 2012, up 5.4 times from 2011's 48.1 billion yen ($496.5 million).

Notably, sales of feature phone games in the country were down slightly, totalling $2.4 billion, meaning that smartphone game sales were higher than feature phone game sales for the first time.

When looking at all mobile content -- not just games -- feature phone sales are actually still higher than smartphone sales, although smartphone content sales will no doubt overtake in 2013, as the feature phone market continues to rapidly contract.

Overall, the Japanese market for mobile games reached $5.1 billion in 2012.

Nexon is just one company that has seen its profits soar thanks to this boost in Japanese mobile game sales. Android monetization platform Metaps also noted recently that a surge in the number of Japanese game publishers choosing to release mobile games over the more traditional browser games has seen its business boom.

Can't wait for FFXVI to be smartphone exclusive. :(
 

kayos90

Tragic victim of fan death
And this is why more and more Japanese devs/series are going to mobile.

I can definitely understand it since the install base is so huge but I feel a considerable amount of alienation from companies like Capcom and SE who are going this route.
 

mrklaw

MrArseFace
And this is why more and more Japanese devs/series are going to mobile.

I hope they enjoy their free money while it lasts, because they are basically burning the IPs they created from real games, and eventually they will run out of ready made assets to revamp, and they will dilute their properties until they are of limited worth.

plus if they release mobile versions of handheld games too close to the original release, people will start waiting for the mobile release, so handheld sales will collapse - meaning there is nothing to support the investment needed for the original game for the mobile version to leech off.


edit: that sounds rantier than I expected it too. I'm not against mobile versions of console games, I'm just wary that companies will eat their own tails.
 

Asd202

Member
I hope they enjoy their free money while it lasts, because they are basically burning the IPs they created from real games, and eventually they will run out of ready made assets to revamp, and they will dilute their properties until they are of limited worth.

Basically what SE did with FF.
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
Bu..but...3DS sales!!!

Or NIntendo does something or they will be left behind like they were in the console market.

That's quite a big overreaction.

EDIT: I mean that, since Japan is handheld centric (the opposite of the West), the main handheld (which is also the main console, like 3DS) will still get lots of support.
 
That's quite a big overreaction.

EDIT: I mean that, since Japan is handheld centric (the opposite of the West), the main handheld (which is also the main console, like 3DS) will still get lots of support.

When was the last worthwhile SE game announced for 3DS? (so Gyrozetter dosn't count)

Look at the scaled back Capcom support compared the first year of the console.

Or other similar Japanese companies. Anime/otaku games are still healthy on the system (like in Vita) but if that's what we can expect from 3rd party japanese companies (Gyrozetter, that new Capcom game for kids, or level 5 stuff) then I'd say that Nintendo is missing the train...
 
So, let me get this straight.
In 2012, the Japanese market was:
- $2.7 billion for smartphone games
- $5.1 billion for mobile games overall (what are non-smartphone games?)
- $4.6 billion for traditional games hardware + software according to Enterbrain, divided in $1.8 billion in software and $2.8 in hardware.

Currency issues notwithstanding )not too sure about the dollar conversion rate used in that second source), mobile gaming looks to be in the same ballpark as traditional gaming including hardware. Am I missing something or was this known?


(minor edit to fix 2.6 to 2.8)
 
So, let me get this straight.
In 2012, the Japanese market was:
- $2.7 billion for smartphone games
- $5.1 billion for mobile games overall (what are non-smartphone games?)
- $4.6 billion for traditional games hardware + software according to Enterbrain, divided in $1.8 billion in software and $2.6 in hardware.

Currency issues notwithstanding )not too sure about the dollar conversion rate used in that second source), mobile gaming looks to be in the same ballpark as traditional gaming including hardware. Am I missing something or was this known?

non-smartphone games is stuff like mobage and other web based games.
 

SmokyDave

Member
Well at least Square Enix has made a lot of official statements about wanting to make higher end phone games.
Yeah, they're definitely at the forefront. They have been since it became obvious that smartphone gaming was something to take seriously. I hope it works out for them.
 

RM8

Member
Yet look at those Pokémon bundles disappearing overnight. Japan had room for both mobile and handheld gaming <3
 

Cromat

Member
I don't understand the hostility a lot of people here have towards mobile games. You're getting games for cheap on devices you overwhelmingly already own and carry around everywhere with you (with a constant data connection). The more the better.
 

Kagari

Crystal Bearer
When was the last worthwhile SE game announced for 3DS? (so Gyrozetter dosn't count)

Look at the scaled back Capcom support compared the first year of the console.

Or other similar Japanese companies. Anime/otaku games are still healthy on the system (like in Vita) but if that's what we can expect from 3rd party japanese companies (Gyrozetter, that new Capcom game for kids, or level 5 stuff) then I'd say that Nintendo is missing the train...

They just announced another DQ remake for it.
 

Curufinwe

Member
I don't understand the hostility a lot of people here have towards mobile games. You're getting games for cheap on devices you overwhelmingly already own and carry around everywhere with you (with a constant data connection). The more the better.

I just have no interest in playing games on my iPhone. It's a poor experience.

If I had an iPad I might be interested in playing certain types of games at home.
 

Mesoian

Member
And this is why more and more Japanese devs/series are going to mobile.

It's not that I don't understand why it's happening, it's that I'm annoyed it's happening on platforms that are completely unintuitive for gaming.

Hell, I understand how powerful my S4 is. Put a Dpad on it, some face buttons, some shoulder buttons, I'm in whole hog. But I don't want to play Grand Theft Auto with touch controls. Ever. Period.
 

iamvin22

Industry Verified
cdtl3nbecbni.jpg
 

SmokyDave

Member
So, let me get this straight.
In 2012, the Japanese market was:
- $2.7 billion for smartphone games
- $5.1 billion for mobile games overall (what are non-smartphone games?)
- $4.6 billion for traditional games hardware + software according to Enterbrain, divided in $1.8 billion in software and $2.6 in hardware.

Currency issues notwithstanding )not too sure about the dollar conversion rate used in that second source), mobile gaming looks to be in the same ballpark as traditional gaming including hardware. Am I missing something or was this known?
That can't be right, but I can't see why it's wrong.

Smartphone games make substantially more money than traditional games in Japan. That seems to be true, yet it sounds strange even to my ears.
 

RM8

Member
I don't understand the hostility a lot of people here have towards mobile games. You're getting games for cheap on devices you overwhelmingly already own and carry around everywhere with you (with a constant data connection). The more the better.
I buy and play phone games. 98% of them ate crap, no hyperbole. This is personally my only issue, the crap to gold ratio is something the industry had never seen before, not even on Wii or Atari 2600.
 

faridmon

Member
I don't mind mobile gaming as long as I get traditional games. I have accepted the fat most of my favourite franchises are long gone and if anything is announced I'll be pleasantly surprised.

Mobile gaming is here to stay folks, you might as well accept that fact.
 

Principate

Saint Titanfall
When was the last worthwhile SE game announced for 3DS? (so Gyrozetter dosn't count)

Look at the scaled back Capcom support compared the first year of the console.

Or other similar Japanese companies. Anime/otaku games are still healthy on the system (like in Vita) but if that's what we can expect from 3rd party japanese companies (Gyrozetter, that new Capcom game for kids, or level 5 stuff) then I'd say that Nintendo is missing the train...

Your basically arguing if traditional gaming in Japan is dead then considering how much the 3DS has a monopoly over there. This isn't simply about Nintendo anymore but traditional Japanese gaming as a whole because console development certainly isn't all that profitable for Japanese developers anymore (at least the large budget ones anyway).
 

Nirolak

Mrgrgr
It's not that I don't understand why it's happening, it's that I'm annoyed it's happening on platforms that are completely unintuitive for gaming.

Hell, I understand how powerful my S4 is. Put a Dpad on it, some face buttons, some shoulder buttons, I'm in whole hog. But I don't want to play Grand Theft Auto with touch controls. Ever. Period.

The new Amazon box may suit your needs better, given Amazon is going to devs and trying to get them to put controller support in their games.

As an actual company (unlike Ouya), they actually might have a fair amount of success rounding up support as well.
 

Somnid

Member
I'm curious as to how that money is actually spread over games. Like is that mostly P&D money? It's interesting to think if the highs are really that high then the lows must be abysmal (may not matter to indies but to big corps it probably does). But also I think what's most important for business is if there's a pattern of repetition. Can you continue to churn enough on the average mobile game or do you fade out like Zynga when you're no longer the "it" thing?
 

EMT0

Banned
I still don't understand why these companies don't treat their phone releases like handheld releases and continue to make handheld/phone exclusives.

I mean, why not release something like Square's Final Fantasy remakes on 3DS/Vita/iOS/Android? It seems to me like that's just leaving money on the table.
 

SmokyDave

Member
I buy and play phone games. 98% of them ate crap, no hyperbole. This is personally my only issue, the crap to gold ratio is something the industry had never seen before, not even on Wii or Atari 2600.
Do you buy blind? Try checking out the iOS thread on here, it's a very good resource.

I buy an awful lot of phone games and I've found that it doesn't take long before you can easily separate the wheat from the chaff. I'm reminded of the old C64 / Spectrum / CPC464 days, where anyone in a bedroom could have a crack and creativity and originality was rife.

I'm digging it, personally. Never had a wider selection of games at my fingertips.
 
Your basically arguing if traditional gaming in Japan is dead then considering how much the 3DS has a monopoly over there. This isn't simply about Nintendo anymore but traditional Japanese gaming as a whole because console development certainly isn't all that profitable for Japanese developers anymore (at least the large budget ones anyway).

Japanese switched traditional gaming to handhelds (mostly), is not about console gaming is about that they are even droping handheld gaming and Nintendo is basically letting this to happen, because their IP's are still healthy for the most part, so they don't care about staying retail and premium prices as long as they can.
 

Lonely1

Unconfirmed Member
Yeah, they're definitely at the forefront. They have been since it became obvious that smartphone gaming was something to take seriously. I hope it works out for them.

I have yet to see good results of such compromises. Port of old ass games and crap like All the Bravest. Even their "best" efforts are comparable to mid to low tier, budget Ps1 era RPGs. But apparently that's what the market wants...
 

ILoveBish

Member
Games on mobile phones are obviously the way to go. Third parties aren't involved with a first party making decisions like overpriced hardware that is incredibly weak and outdated just to line their pockets. Just ship out the best game for your customers who would rather play on their phone then buy a overpriced and outdated handheld to play the game.
 

Coxy

Member
Nexon, cited there as a success story there just released their Q2 2013 financials a couple of days ago and they only made 690 million yen off mobile games compared to 23,567 million off pc games
 

numble

Member
I have yet to see good results of such compromises. Port of old ass games and crap like All the Bravest. Even their "best" efforts are comparable to mid to low tier, budget Ps1 era RPGs. But apparently that's what the market wants...
How far did you get in Deus Ex: The Fall and Bloodmasque to think it is PS1 quality?
 

numble

Member
Nexon, cited there as a success story there just released their Q2 2013 financials a couple of days ago and they only made 690 million yen off mobile games compared to 23,567 million off pc games

Nexon's data is right here:
http://pdf.irpocket.com/C3659/qnwX/q0mN/U4Q2.pdf

Mobile revenue: 7,291 million yen, last year it was 180 million yen
PC revenue: 29,333 million yen, last year it was 22,697 million yen

You are looking at Q3 2012. We are now in Q3 2013.
 

Jarnet87

Member
Japanese developers/publishers have to choose between making games that they think will appeal to the West, or making boob card games/musou games on phones,tablets, and handhelds. Maybe we shouldn't be so tough on them after all.
 

RM8

Member
Do you buy blind? Try checking out the iOS thread on here, it's a very good resource.

I buy an awful lot of phone games and I've found that it doesn't take long before you can easily separate the wheat from the chaff. I'm reminded of the old C64 / Spectrum / CPC464 days, where anyone in a bedroom could have a crack and creativity and originality was rife.

I'm digging it, personally. Never had a wider selection of games at my fingertips.
I don't, but it's so tricky. I bought After Burner Climax despite negative fan reception and out was a turd indeed. I buy Prince of Persia S&F despite negative fan reception and it's probably the best game I've played on a phone. I buy League of Evil because of universal praise (I recall a guy saying it was particularly better than Wario Land Shake It, lol) and Ididn't like it.
 

SmokyDave

Member
When looking at all mobile content -- not just games -- feature phone sales are actually still higher than smartphone sales, although smartphone content sales will no doubt overtake in 2013, as the feature phone market continues to rapidly contract.
I think this is very significant. Unlike the west, where smartphones had to start from scratch, there is an existing pool of Japanese gamers ready to move from one form of phone gaming to the next. The potential for further growth is immense.
 

Kagari

Crystal Bearer
I don't understand the hostility a lot of people here have towards mobile games. You're getting games for cheap on devices you overwhelmingly already own and carry around everywhere with you (with a constant data connection). The more the better.

Mostly because people want several things which may include 1) deeper experiences 2) buttons 3) proper treatment of IPs rather than quick cash-ins or ports...

I've tried a few of the more popular phone games and I just don't see the appeal. Most of them are tap to win browser games so I can definitely see why people aren't happy with those.
 

SmokyDave

Member
Mostly because people want several things which may include 1) deeper experiences 2) buttons 3) proper treatment of IPs rather than quick cash-ins or ports...

I've tried a few of the more popular phone games and I just don't see the appeal. Most of them are tap to win browser games so I can definitely see why people aren't happy with those.
All 3 of those are virtually guaranteed to arrive over the next few years. We know that numbers 1 & 2 are already being worked on, 3 will be a natural progression from 1.
 
Top Bottom