However more consoles in the market means higher revenue from hardware units which means the market shrinking as far as hardware revenue is concerned
I questioned whether having less systems in the market will lead to more software spending. If software revenue growth is big enough to cover the hardware loss, then the market is flat or growing. If it's not, then the market is declining
Ultimately, I don't think we can separate home and handled console markets anymore. Nintendo is the only company releasing dedicated handhelds, and their best selling model is a hybrid. What can be said however is home-exclusive consoles are failing to meet their past popularity, with Japanese customers choosing portable or hybrid models instead
That's a bit of a flawed thinking because if revenue was all that mattered, then these companies would have more consoles. The reason Sony's handhelds and Nintendo's console were phased out was because they weren't very profitable. The market didn't want 5 different systems.
We're getting a little off the rails here. The main point of this thread was that Japan's game market wasn't as doomed as it appears. The success of the Switch shows Japan still cares about dedicated game systems. We can argue how to measure the growth, but I think to say it's not doom and gloom as some people predict.
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