Japan's video game market, traditionally dominated by mobile gaming, has witnessed a significant rise in PC gaming. Recent industry analysis indicates that the PC gaming sector in Japan has "tripled" in size over the past few years.
Japan's PC Gaming Scene "Triples in Size" After Consistent Growth
In recent years, Japan's PC gaming market has experienced consistent growth, with annual increases in revenue. According to industry analyst Dr. Serkan Toto and data from Japan’s Computer Entertainment Supplier’s Association (CESA), the PC gaming market in Japan has "tripled" over the past four years. Just before the Tokyo Game Show 2024, CESA reported that Japan’s PC gaming market reached $1.6 billion USD, equivalent to approximately 234.486 billion Yen, in 2023.
Despite a modest year-over-year increase of about $300 million USD from 2022, this steady growth has propelled PC gaming to account for 13% of Japan's predominantly mobile-dominated gaming market. Dr. Toto points out that while the figures might seem modest in dollar terms, "the Japanese yen has been extremely weak over the last years and still is," suggesting that in local currency, the spending is significant.
Japan's gaming market remains heavily influenced by mobile gaming, which significantly outpaces PC gaming. In 2022, Japan’s mobile gaming market, including microtransactions, reached $12 billion USD, or roughly 1.76 trillion Yen. Dr. Toto emphasized that "smartphones remain Japan’s biggest gaming platform." Notably, Japan's "anime mobile games" market alone constitutes 50% of global revenue, as per Sensor Tower's "2024 Japan Mobile Gaming Market Insights" report.
(c) Statista Industry analysts attribute the substantial growth in Japan's "Gaming PCs & Laptops market" to "customer preferences for high-performance gaming equipment and the increasing popularity of esports." Statista Market Insights forecasts that Japan's PC gaming market could see revenues soar to 3.14 billion Euros, or approximately 3.467 billion USD, this year. They also project that the number of users in the Gaming PCs & Laptops market will reach 4.6 million by 2029.
Dr. Toto highlights Japan's long-standing history with PC gaming, which began with home-grown computers in the early 1980s. He notes, "It is correct that soon after, consoles and later smartphones took over, but PC gaming was really never dead in Japan and its niche character has always been a bit exaggerated in my view." Factors contributing to the current boom in PC gaming in Japan include:
- Rare but existing home-grown PC-first hits like Final Fantasy 14 or Kantai Collection
- Steam's improved store front and expanded presence for the Japanese audience
- Increasing availability of smartphone hits on PC, sometimes on day one
- Enhanced local PC gaming platforms and Steam's further expansion in Japan
Xbox, Square Enix, and Other Gaming Giants Expand PC Segment
Games that continue to dominate in Japan often tie into the eSports scene, which has gained significant traction in recent years. Titles like StarCraft II, Dota 2, Rocket League, and League of Legends are prominent. Moreover, major game developers and publishers are increasingly targeting Japanese PC gamers by porting their titles to the PC platform.
Square Enix, for instance, released Final Fantasy 16 on PC earlier this year and has committed to a dual-release strategy for consoles and PCs.
Microsoft, through its Xbox and PC gaming divisions, is also expanding its footprint in Japan. Xbox executives Phil Spencer and Sarah Bond have been proactive in promoting and growing Xbox and Microsoft Gaming in the country, forging partnerships with major publishers like Square Enix, Sega, and Capcom, with Xbox Game Pass playing a crucial role in these alliances.
