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Forums - Sales Discussion - Sony prioritizing US audience for PS5 reveal because Japan is losing interest

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What do you think

people already know this 37 48.05%
 
I don't believe what he said 8 10.39%
 
There is still hope for Japanese market 13 16.88%
 
It's not relevant does no... 14 18.18%
 
Banzai Nippon 5 6.49%
 
Total:77

US and EU/UK are the biggest markets for Playstation. Makes sense to target your biggest audience first.

Global unit sales of PlayStation 4 as of May 2020, by region-

Europe 44.82m
North America 36.19m
Rest of the world 19.19m
Japan 9.8m

Last edited by hinch - on 10 June 2020

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vonny said:
UnderwaterFunktown said:
"Japan's video game market is a shadow of its former self"
Meanwhile AC:NH has a shot at becoming the best selling game of all-time over there.

It is true that (fully) home consoles have been doing significantly worse ever since the seventh generation so I can understand Sony's decision to not prioritize it, but the handheld market has barely slowed down, so it's not like video games are on their death bed in Japan.

The Switch wont even match the 3DS sales in Japan(most likely) and it will never reach DS or gameboy numbers, handheld market in Japan shrinking isn't a myth it's a fact.  

What makes you so sure? I think the switch will cross 3DS numbers in Japan. Just wait and see



Just a guy who doesn't want to be bored. Also

Let's be honest, Ninty owns that market now and Sony has no idea how to take it back, nor a need to even try to take it back. The switch will sell like hotcakes in Japan in my opinion and switch 2 as well. Ninty will have most of the marketshare while the raw numbers of each generation won't vary that much. I don't think the Japanese market is dying



Just a guy who doesn't want to be bored. Also

Hynad said:
noshten said:
The bigger issue for PlayStation ecosystem is that by not making a system that is focused on it's home turf, it's likely their partners would lose relevance in their home nation. New studios and publishers will grow on the Nintendo ecosystem, which in turn might replace Sony's current partner studio/publishers in relevance in Japan.

Errr. The PS5 will still be sold in Japan. You don't need to have everything focused on Japan to get Japanese developers on board. If it sells well because the console is what Japanese gamers want, then Japanese developers who want to focus on that audience will get on board. 

Good thing many Japanese developers understand that their particular kind of games also have an audience outside of Japan, so they can continue to make those games.

If PS5 is not viable in Japan those games will also not be viable if they are exclusive. 

PS3/PS4/PSV had a lot of exclusive games that never made it to a Nintendo ecosystem. If this changes the results of the PS5 especially in it's first few years in Japan will be worst than PS4 transition. Just as a reminder during the first three years of the PS4 sold around 4M units. A majority of titles were cross-gen, AA games usually had a PSV version. This was all done because PS3/PS4 isn't attractive to the Japanese audience, so studios/publishers needed multiple platforms in order to be profitable. The same thing will happen with PS4/PS5, the majority of Japanese games will cross-gen but the difference is a lot of them will also be on the Switch. This will create additional competition which PS4 didn't really have when it launched since it was competing with the Wii U. 

Hardware Sales PS4 First Three Years:

  • 2014: 970.667
  • 2015: 1.330.410
  • 2016: 1.799.586

TOTAL: 4.100.667

Top 10 Japanese 3rd Party games 2014/2015/2016 Lifetime Sales: 

  1. 2016. Final Fantasy XV - 1.042.951
  2. 2015. Metal Gear Solid V: The Phantom Pain - 448.554
  3. 2016. Dark Souls III - 407.637
  4. 2016. Persona 5 - 405.455
  5. 2016. Yakuza 6: The Song of Life - 367.965
  6. 2015. Dragon Quest Heroes: The World Tree - 329.934
  7. 2016. Dragon Quest Heroes II - 280.542
  8. 2015. Bloodborne - 231.609
  9. 2016. Tales of Berseria - 220.719
  10. 2016. Dragon Quest Builders - 213.581

TOTAL:4.354.584

Now out of those games Final Fantasy XV, Dark Souls III, Yakuza 6 and Bloodborne were exclusive to the PS4 the rest were cross-gen titles. I've included Bloodborne even though it was published by Sony but it's still the work of a 3rd Party Publisher.

Hardware Sales Switch First Three Years:

  • 2017: 3.407.158 
  • 2018: 3.482.388
  • 2019: 4.493.885

TOTAL:  11.383.431

If we compare this to Switch Top 10 Japanese 3rd Party games 2017/2018/2019 Lifetime sales

  1. 2019. Dragon Quest XI S - 520.693
  2. 2018. Taiko no Tatsujin: Drum 'n' Fun!475.437
  3. 2019. Fishing Spirits - 439.131
  4. 2019. Yo-kai Watch 4 - 358.356
  5. 2019. Mario & Sonic at the Olympic Games Tokyo 2020 - 312.574
  6. 2017. Monster Hunter Generations Ultimate - 309.596
  7. 2018. Dragon Quest Builders 2 - 295.237
  8. 2019. Jikkyou Powerful Pro Baseball - 225.614
  9. 2017. Super Bomberman R3 - 215.218
  10. 2018. Octopath Traveller - 193.780

TOTAL: 3.346.636

The games in bold are the ones that are exclusive to the Switch, now when the PS5 launches it will surely have some big exclusives but those would be hampered by the slow adoption of Japanese market of PS5, so it's very likely big Japanese publishers will opt to have cross-gen titles for at least the first two years of the PS5. The competition that the Switch brings will be much stronger than what PS4 faced. So anything Sony isn't paying for in terms of exclusivity might also be on the Switch... that's mainly those AA games that sell 50-200K on the PS4, losing a large portion of those titles which used to be exclusive to PlayStation ecosystem will also contribute to the slower growth compared to PS4. 

Also if the PS5 launches at a higher price compared to the PS4... than it might even struggle to sell 3M in its first three years on the market. 



hinch said:

US and EU/UK are the biggest markets for Playstation. Makes sense to target your biggest audience first.

Global unit sales of PlayStation 4 as of May 2020, by region-

Europe 44.82m
North America 36.19m
Rest of the world 19.19m
Japan 9.8m

Yep, they lost a lot of audience in Japan during the transition from PS2/PSP to PS3/PSV. I think they've stabilized with the PS4... but that was because originally it was competing with Wii U, now that Switch is dominating the market outlook is pretty bad for PS5 in Japan and Sony probably know it. 

I think they might eventually sell over 12.5M PS4 units in Japan, if they lower the price considerably once PS5 is launched. Honestly, some Japanese are probably still waiting for a price drop on the PS4 before buying it. 

But the tendency is for the PS5 to struggle in Japan. 

PS2/PSP: 21.98M/19.69M TOTAL: 41.67M

PS3/PSV: 10.5M/5.86M TOTAL: 16.36M

I think similarly to the PS3/PSV it will be supported by Japanese Publishers for at least three more years.
PS3/PSV 2014: 445K/1.16M TOTAL: 1.6M
PS3/PSV 2015: 193K/1M TOTAL:1.19M
PS3/PSV 2016: 47K/849K TOTAL:0.89M

The main question for the PS4 at a lower price in Japan is whether it would do PS3 like numbers or PSV like numbers in 2021 and 2022... Last edited by noshten - on 10 June 2020

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Where’s the “Arrogant Sony”?



I don't think they are being arrogant, just realistic :)

The PS4 basically received all the major support it could have received from Japanese 3rd Parties. You had Monster Hunter, Final Fantasy, Yakuza, Resident Evil, Kingdom Hearts, Metal Gear Solid, Nier etc all exclusive on the ecosystem in Japan. It basically lacked any competition until 2017 when the Switch launched and despite that it will sell just fractionally better than PS3. Square was actually contemplating releasing DQXI exclusively on the system even though DQ is historically been a franchise that is on both Sony and Nintendo consoles. 

The situation is unique as PS4 faced the Wii U initially and received the lion share of support. This won't be the case with the Switch, I doubt that all of the biggest 3rd party games in Japan will be on the Playstation 5 without some sort of exclusivity deal. Even if the next Monster Hunter is cross-gen exclusive on Playstation ecosystem, it's ceiling is going to be around 3.5M in Japan with digital. While a PS4/PS5/Switch DQXII is likely to easily sell over 4M



At this point, it's impossible to compete with the Switch in Japan with a traditional console, so it's better to be pragmatic and base your growth strategy in other countries and regions.


The interesting thing to look out for it Asian Markets - Taiwan/South Korea/China has been trending towards Nintendo since the Switch launched there, prior gens these regions were uncontested by other hardware makers. Since for Microsoft North America has always been the main market with Europe & Rest of the World secondary, while Nintendo had a monumental failure with the Wii U and is only now rebuilding a strong presence in the minds of these audiences.

Last edited by noshten - on 10 June 2020

NathanSSSS said:
Ka-pi96 said:
Bullshit. The console market is still strong, the Switch proves that.

They prioritised the US for the PS4 as well, they released there like 6 months earlier than Japan. Wouldn't be surprised if the same happens again. Them not caring about the Japanese market isn't because it's not big anymore, it's because they're a bunch of sell outs.

I dont think Switch sale can prove anything since Japanese are heavily handheld focused, just check out the top 3 hardware of all time in that region, they are all undoubtedly handheld console, I've always seen handheld consoles different to traditional home consoles, and for Switch I bet 90% of ppl buying it for use on go, with that in mind, and Xbox always being irrelevant in Japan, we can see an obvious decline on sales of PlayStation consoles generation by generation in there, PS2 used to perform extremely strong in the region, followed by og PlayStation which seems fair, but that's 2 decades ago if you recall, then PSP, again handheld, then PS3 with just above 10 million units sold, and in this gen, PS4 cannot even sell more than 10 million even the total shipments wordwide topped 110+ million, that's the situation of home console in Japan. I don't know you guys, but if I were SONY, why would I bother prioritizing in such a market like this?

The ratio of sales between the OG and Lite models of the Switch indicates that your assumption is wrong. Roughly, except for weeks where the OG model was in short supply because of COVID, the OG model accounts for 70% of sales in Japan which means Japanese customers do buy the Switch as a home console.



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Last edited by CGI-Quality - on 10 June 2020

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