Despite its tech-savvy culture, Japan has for years lagged behind the West in its adoption of smartphones. However, due to the shift from feature phones to iPhones and Android handsets in the last year, app analytics outfit App Annie now concludes that Japan leads the world in app revenue — and the culprit is an explosion in mobile gaming.

Japan bested the US in app revenue this year by 10 percent. That's up from spending 40 percent less than the US last year. The reasons for this shift are two fold: Smartphone penetration in Japan has boomed from 28 percent last year to 42 percent in 2013, putting it apace the States' 44 percent. That led to an incredible increase in apps being sold, and games apps are leading the way by a wide margin. App Annie lists game publishers like GungHo Online and Sega as driving sales. In addition, Google Play sales skyrocketed in the country — far more than any other place in the world — putting it on equal footing as App Store sales.

App Annie expects smartphone sales in Japan to continue growing into 2014, potentially reaching more than 60 percent. It'll be interesting to see how app makers respond, as Japan becomes an increasingly profitable marketplace.

http://www.theverge.com/2013/12/11/5199800/japan-overtakes-the-us-in-app-revenue-thanks-to-mobile-games

http://online.wsj.com/news/articles/SB10001424052702303330204579251221692606100

That kinda explains why errery gaem of Square Enix is turning iOS/10

It's bad news for people who like 40 hour games. Previously, those who liked 5 minute game sessions were subsidising your hobby as the experience they really wanted wasn't available elsewhere.

Now they have better options, the hardcore market including yourself will be forced to fund the titles you like all by yourself.

It is not, however, bad news for gaming. More people are playing video games than ever. Just not the ones you like.

Then, it is only good news.

Surely this has to be bad news for handhelds in Japan.

They can keep the mobile stuff. Another consoles are dead thread on the way.

And now you see why Square is chasing premium mobile games.

Final Fantasy XIV no longer coming to PS4, it will be an IOS exclusive...and only Japan.

I don't think so. Have you played a lot of IAP dependent made from Japanese companies? They're more abusive on your wallet than anything I've seen from the West. Games where top players are spending thousands of dollars every month just to keep up with the other spenders.