I think the japanese market is shrinking YoY, stats say so. And its very unstable as well. In the past it was bigger, nes, snes and psx generations had many games of the favorite japanese genres sell million. Nowadays you don´t know if this RPG is going to sell well or not anymore. If it weren´t for Nintendo to tap into the casual crowd, the japanese market would have slumped even deeper.
f developers concentrateon handhelds then they lose their western market share, if they concentrate on HD consoles then their domestic sales slump. We´ll have to wait and see how the upcoming 3rd party Wii support does in Japan and worldwide.
What japanese publishers and developers should do is focus on smart marketing and build a friendly, open community to treat their fans and amass new ones. They should concentrate on a style that has a worldwide appeal, but still not let go of the distinctive japanese one. This stuff has already started happening, so they are on the right road. What bothers me is, if Wii 3rd party hardcore software fails, then what?...
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