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December 17, 2005
Microsoft Xbox 360 a "failure" in Japan?

It seems as though the Xbox 360 has been a "failure" in Japan. With reports of less than half of the allocation for Japan being sold and from what I've seen first hand in Tokyo, it really does not appear that the sales are going as well as Microsoft had hoped. The first-hand reports from Microsoft employees seems as if they were drinking too much Kool-Aid when one compares their accounts of the events with actual "news" reports. Steve Ballmer was even quoted as saying, "We have very strong momentum, particularly in the northern parts of Europe, United States and Australia. I know for sure, 100 percent, we will do much better in Japan than we did with Xbox 1." Which, of course, did not happen. As stated in the previously mentioned link the Xbox "1" (as in PS One?) sold 123,000 units during the first three days of sales in Japan. The Xbox 360 sold about half of that at 62,000 units (last I checked 62,000 is not less than half of 123,000 unless there is significant rounding). Either way, selling just over 60% of the allocated Xbox 360 stock is not doing better than the Xbox "1", not even using the funny math politicians sometimes love to use.

The sales figures for the US are equally as "bleak" with the Xbox 360 selling far less than the original Xbox in the same time period. Compare this to the new and completely untested PSP's release, which sold over 500,000 units in the US in the first two days. It is also very important to note that NPD retracted their original sales data for the US, claiming that it overstated the sales data which seems to imply that the Xbox 360 sold less in the US than their original sales figures report. The NPD Group sales figures are the sales figures being reported by many websites and "analysts".

Back to Japan... There are many Xbox 360s sitting on the shelf here in Japan. Some of them at very popular chain stores like Tsutaya and Bic Camera (ビックカメラ). For reference, the Xbox 360 launch was held at a Tsutaya store. In fact, the above photo was taken at the launch store about 3 days after the Xbox 360 launched in Japan. Even sadder still, I've seen huge displays at the entrances of some stores, with people wearing Xbox 360 overcoats and often there is not a single customer interested. And this is at heavily trafficked stores. I think the reason why the Xbox 360 is a "failure" in Japan is the fact Microsoft doesn't understand Japanese gamers. It seems that Japanese gamers are most interested in Dating sims (in which case I am not even sure if there was a single Xbox dating sim), RPGs (which the Xbox 360 lacks at launch), Fighting games (Dead or Alive 4 is continually getting delayed), a few racing games (like Initial D), and puzzle games. The games for the Xbox 360 launch seem to be all first person shooters and racing games. Not very interesting. Also very, very bad are the fact there are 12 titles on the Xbox compatibility list for Japan compared to the over 200 games on the list for the US. Three of those on the list are Halo games. Not a single one of the games on the list appears to be a Japan "exclusive" game (meaning a game only available in Japan).

It also appears that many Japanese gamers are waiting for the PlayStation 3 (I know I am, but that's for a different reason... my love...). They expect it to have a larger number of launch games available and to truly support high definition, unlike the Xbox 360. Then again, Blu-ray is doomed to fail for the sole reason that Apple is backing it and everything Apple backs inevitably fails. On a "personal" note, I have no interest in the Xbox 360 as I see it as being used as a way for Microsoft to sell more copies of Windows XP Media Center Edition 2005.

 Posted by rosyna at 09:05 AM | Comments (14) | TrackBack (3)
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Comments

Ah yes...the Japanese, I know them well having worked as an exec in one of their major corporations. They are very loyal to their country and brands so Sony PlayStation will sell well. They are also a hard sell, but the iPod, for example, has quality so they'll purchase that. The way American corporations' operate their Japanese satellites will determine how receptive the Japanese are to that American business. Since they really do not celebrate Christmas, although you will see the Christmas decoration in some the shopping districts, New Years is an entirely different matter, so maybe, just maybe the XBOX 360 sales "might" pick up a bit around that time, but you can bet that there is far more anticipation for the new PlayStation 3.

Posted by: CREB on December 17, 2005 12:53 PM

"Then again, Blu-ray is doomed to fail for the sole reason that Apple is backing it and everything Apple backs inevitably fails."

What, like USB, Optical Drives, LCDs etc. etc. etc. - sure, Apple often leads and introduces new technology to the market, but many of the technologies that Apple has introduced are now widely used by other manufacturers.

Posted by: Lachlan Coles on December 17, 2005 5:56 PM

I second the previous comment.

Add to that list :

The graphical user interface.
Stereo Sound.
The Mouse.
Hi resolution color screens.
Laser printers.
The floppy disk.
Ethernet.
Firewire.
Wi-Fi.
Digital Cameras
The PDA.
Digital Video.
Online music sales.
Online video sales.
Should I go on?

I'd hate to see what today's 'high tech" landscape would look like if all these technologies that Apple helped pioneer failed.

Yes, Apple has had some spectacular failures (NUBUS card anyone?) But that have hit far many more home runs.

Posted by: Anon E. Mouse on December 17, 2005 6:51 PM

Latchlan, Anon;
I think you two failed to pick up on the irony of Rosyna's statement.

Posted by: Nick on December 17, 2005 7:21 PM

Ok, this is an article about video-games in japan, and no mention of Nintendo? Ehmmm, let me guess, you hate them and/or you think they are doomed or something?

Nintendo is still strong in Japan with the DS, and aside from the PS3, the japanese are also waiting for the Revolution, which is due in 2006.

I know that the big N doesn't aim at competing with Sony and MS, but in their home country, they will surely eat some sales from the 360 market.

Posted by: Mario on December 17, 2005 11:39 PM

Well, no surprise: The XBox 360 comes only with amrican-style "PC" games - there is no single true "console" game in the launch line-up. So it has to fail in Japan - and other countries where console gamers are still console gamers. "console gamer" != "PC gamer".

Posted by: on December 18, 2005 5:42 AM

It is always going to be hard for any foreign products to sell in Asia.

You are talking about a country where the majority of the population do not know or like using a computer (despite housing some of the largest PC makers in the world). Instead, consoles or dedicated devices are relied upon to do what they are suppose to do.

Even Apple, which has been trying to sell their products for so many years in Japan and Korea failed to make any sort of impressions there.

The XBox is basically a promising rookie trying to play with the big boys, but doesn't have enough experience to win any sort of endorsements yet because he hasn't gained popularity. It is however a very capable system hotly contesting the markets in North America, Europe and Oceania regions.
Also, I don't think many people realise how useful MCE really is.

Posted by: Informer on December 18, 2005 6:06 PM

If Xbox sales are so weak everywhere, then WHERE ARE THEY?

Waiting lists until February. Has anyone actually seen one?

Posted by: no xbox in toronto on December 22, 2005 10:27 PM

Sounds like they aren't shipping many to Canadia. If they aren't shipping many, that would explain why you cannot find one.

Posted by: Rosyna on December 23, 2005 7:51 AM

While in Japan, can I buy a local monitor that will work on the computer I have from Canada?
Please help.
rj

Posted by: R. Johnson on January 12, 2006 8:53 PM

Good to see I can pay for a 38,800¥ games console with my suica! lol, I wonder if anyone has ever actually done this. The person I know with the highest suica charge had about 20,000¥.

None of my friends have even mentioned the 360 to me, even the avid FF fans and other gamers. It seems to be a complete non-event. I must admit the unit has no appeal to either; there's simply nothing I want to play on it, and the technology doesn't impress me (1080i? wtf?!). As you report, the games on offer don't appeal to Japanese gamers, although it looks like DOA4 has finally made it to release. DOA isn't going to sell all that many systems by itself though.

I'm with you on the PS3. I just can't be bothered with the 360, I seriously wouldn't even pay 10,000¥ for it.

Sho

Posted by: Sho on January 20, 2006 3:06 AM

Yeah,

The 360 in Japan is a total failure.
Because Japanese consumers do not dig First person shooters , American RPG’s and football ( madden 104-updates)
They have different taste. Micro$oft didn’t see that, they just wanted to be the first and best launch console in the world. But what do you know ? They also have the first most buggy, crashy, hardware overheating pile of fresh console crap I’ve seen since Bill Clinton had the Maiden of Russia.

Posted by: PIDGIT © on January 25, 2006 6:02 PM

My 2 cents is that nothing microsoft can do about this. Mostly Japanese people are in transition. So they are waiting for PS3 and WII. I don't think having Japanese exclusive title will that much.

After PS3 and WII is out is totally different story. After that people around the world can make informed decision and buy the best console. I just hope this time around people will make smart decision instead of just being blindly loyal to a particular brand.

In short Microsoft have no reason to worry if their console doesn't sell well to Japanese now. The real fight is when all console are on the table. Microsoft only have to worry if their console did not sell well after PS3 and WII is out.

So what is this about having head start! It is about having a good headstart. That is all to it. The way I see it. Either a 10 million head start or 3 million head start anywhere in the world (even not in Japan) is already a good head start. That means:

1. Hardware can be produced and sell cheaper.
2. Mature hardware platform means it is more stable. Known issue are solved.
3. Mature Software. Games will make use more of Xbox 360 power and as times goes by achieve true next gen quality and performance.

My conclusion. Microsoft has a good head start. Japanese market is important only after all console is available. In the mean time I am not buying Xbox 360 because I am waiting for price drop and actual real world comparison between Xbox 360 and PS3.

Oh! So sorry, I am not from Japan either!

Posted by: XbokZero on May 18, 2006 7:31 PM

La Esbox es una maza loko aguante maicrosof, le rompen en el culo a todos los giles de soni y esas cosas. viva la esbox trisisti vieja.

Posted by: Crivo on August 2, 2006 10:28 AM
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