Yes Japan is in a very bad way and may not get better till next gen the recession goes very deep there

Handhelds are totally dominant in Japan but the DS is dominant worldwide.

We either combine both types of consoles for an overall view of the situation in Japan or we split them up.

If we split them up (and going by the current trend) then sony and nintendo are going to benefit from the handheld market. Console sales are in a slump.

If we combine the two types then overall sales will be up on based on units sold but this will be largely due to handhelds.

Ultimately the true fight in Japan is in the handheld market in terms of units sold. If Sony could have brought this war to the rest of the world with the PSP they would be much better off financially in their gaming division.

The DS is a money machine.

X360 has sold better than the original but this is superficial.

@justinian
much of what you say it true and it is fair to say that the growth of sales of the 360 is superficial by doubling there sale so far they still only have 1 12th of the market but this will give them abetter platform for the future as they will still make some more sales.

If you go by revenue, the Japanese market is shrinking. Not as much as the GoG decrease of console sales, but it's still shrinking slightly...even with the rapid rise of handhelds in Japan.

@mrstickball
this is a very good point as this may also explain to some extent why the home console is shrinking when you take world finance into account I think Japan has been financally for some time.

Interesting OP. Yes, I do see that there is some shrinking in the console market. But yes, handhelds are growing. I think the handheld aligned more with the Japanese value where consoles have note. Although, it seems that the consoles are not doing as hot, even compared to a year or two ago.

@Smashchu2

I think things are bad in Japan as a good eg: can be found in sony laying off people this is something that is not common in past allthough this may have changed