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konnichiwa said:
Otter said:

I think its likely there is decent growth but the thing is a lot of these are likely going to China (same problem as Playstation),

But that has always been the case for all consoles.

Chinese fans invade Japanese PS3 launch

Taken from ITmedia. So anyway, the CEO of Sony, Mr. Ken Kutaragi, made a surprise visit to a Bic Camera branch at Yuurakuchou to personally hand over a PS3 to the first person in line.

The first guy in line was CHINESE.

Not only that, CNET Japan was also reporting on the number of Chinese PS3 auction listings they found on Taobao, a Chinese auction site, and predicted yesterday that a lot of the people queuing up would be Chinese. And indeed they were. Even Danny Choo estimated that 30% of the people queuing up were foreigners. Q-Taro and other sources also reported that people, including homeless ones, were being paid to queue up. Imagine how many Japanese gamers walked away empty handed because of the number of Japanese PS3s being shipped to China and all over the world for 1,200 USD or so.

To what degree though? 

The situation is exponentially worse though and has been given as the explanation for why PS Hardware is so disproportionately high compared to software, and why initially the PS5 was able to outpace the PS4 in 2021 despite seemingly less favourable market in Japan compared to 7 years ago.