AfterDawn: News

Microsoft wont give up on Japan

Microsoft Corp. has had very little success in Japan with its Xbox 360 games console. Even in the PlayStation 3's (PS3) worst days in its makers home market, it still outsold the Xbox 360 2 to 1. However, Microsoft has repeatedly tried to push the console further in the face of such poor sales performances, and at the Tokyo Game Show on Wednesday, Microsoft has some good announcements to make.

One of the most important announcements was support from Square Enix, which up until now has held out on the Xbox 360. The developer will create two titles for the Xbox 360 platform, including Infinite Undiscovery and The Last Remnant. Both games appear to be RPG games, which are very successful in Asian markets.



Tomonobu Itagaki from Team NINJA/Tecmo Ltd. and Hironobu Sakaguchi from Mistwalker also appeared at the conference to voice their support for Microsoft's platform. "We continue to evolve our strong relationships with Japan's best and most innovative developers, and we're looking forward to delivering exclusive high-definition titles for consumers worldwide, this year and beyond," Interactive Entertainment chief Don Mattrick said.

Microsoft has a very tough battle to fight to convince Japanese consumers to invest in Xbox 360. Between August 27 to September 2, the console sold only 1,635 units, compared to 39,371 Wii units and 18,068 PS3 units.

Source:
Betanews

Written by: James Delahunty @ 12 Sep 2007 19:32

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• 26 comments

• WierdName

  Quote:Microsoft Corp. has had very little success in Japan with its Xbox 360 games console. Even in the PlayStation 3's (PS3) worst days in its makers home market, it still outsold the Xbox 360 2 to 1.Well maybe if Microsoft didn't have the whole "red ring of death" issue, maybe it would sell better.

  12.9.2007 20:53 #1

• rihgt682

  @wierdname, that's not true at all. japaness people like to support they're company and not anyone eles. They have a huge pride thinking they are better than anyone eles in the world. Microsoft is american country and that could be the issue. Because PS3 has no games right now and it's selling soo much more than 360. while 360 has great title.

  12.9.2007 22:37 #2

• kyo28

  Originally posted by rihgt682: @wierdname, that's not true at all. japaness people like to support they're company and not anyone eles. They have a huge pride thinking they are better than anyone eles in the world. Microsoft is american country and that could be the issue. Because PS3 has no games right now and it's selling soo much more than 360. while 360 has great title.
  That's not only borderline racist but also completely false.
  
  1. the xbox sells poorly because:
  - its low-quality: the failure rate is too high and Japanese want quality products
  - there are very few interesting games on it for Japanese. I can only count Trusty Bell - Chopin no Yume and Blue Dragon as exclusives that might interest Japanese
  - Xbox has very poor brand recognition in Japan
  - Poor customer support
  
  2. Foreign brands DO sell well in Japan: brands like Lancome, Chanel and Louis Vuitton are outselling Japanese brands ... because they adapt their products to the Japanese market and understand what Japanese consumers want (unlike MS). They offer high quality, good brand recognition and products specifically adapted to the Japanese market.
  
  So instead of spewing nonsense like this, please do some research first.

  12.9.2007 23:43 #3

• saltynuts

  Quote:Originally posted by rihgt682: @wierdname, that's not true at all. japaness people like to support they're company and not anyone eles. They have a huge pride thinking they are better than anyone eles in the world. Microsoft is american country and that could be the issue. Because PS3 has no games right now and it's selling soo much more than 360. while 360 has great title.
  That's not only borderline racist but also completely false.
  
  1. the xbox sells poorly because:
  - its low-quality: the failure rate is too high and Japanese want quality products
  - there are very few interesting games on it for Japanese. I can only count Trusty Bell - Chopin no Yume and Blue Dragon as exclusives that might interest Japanese
  - Xbox has very poor brand recognition in Japan
  - Poor customer support
  
  2. Foreign brands DO sell well in Japan: brands like Lancome, Chanel and Louis Vuitton are outselling Japanese brands ... because they adapt their products to the Japanese market and understand what Japanese consumers want (unlike MS). They offer high quality, good brand recognition and products specifically adapted to the Japanese market.
  
  So instead of spewing nonsense like this, please do some research first.
  
  
  i dont think his comment is nonesense at all.there is some truth to his comments and its his opinion.and that is what we do here share facts and opinions.so his comments being nonsense is your OPINION.

  13.9.2007 04:39 #4

• xempler

  Actually kyo28 had it right. It's not selling well in Japan due to a lack of brand recognition and the poor quality of the unit. This in turn make developers slow to release Xbox titles and so forth, so it's pretty much a vicious cycle.
  
  I'm sure there are are few people who want to support Sony or Nintendo because their a Japanese company but the majority who are true gamers will buy only quality consoles with quality games.
  
  I mean lets face it the Xbox defective rate is so high, MS had to include a 3 year "red ring of death" warranty to all their units. That doesn't exactly motivate me to go out and spend hundreds of dollars on their product only to waste my time trying to get it repaired.

  13.9.2007 05:31 #5

• 26r0cK

  @right682, thats like saying how white ppl support their american trucks and muscle cars saying how japanese cars are just toys. But thats not the case..
  
  I agree with kyo28 and xempler. Sure xbox360 has sum great titles but maybe japans not all into FPS and american sports games. (which seems like the only games american really make). And dont say that japan only supports their own company. Japan loves american movies..lets see a japanese movie come to theatre in america! doubt it..the americans already ruin their animes. Im sure when Square-enix releases their xbox360 games sales will go up because im sure Square has a better idea of wat Japan wants.

  13.9.2007 05:41 #6

• evilh0ly

  There are some misconceptions here. I did q research for my marketing class about the japanese consumers. I found out that japanese consumers are willing to pay a premium for reliable products rather cheap goods.
  
  And as you know Xbox has the notorious Ring of Death issue also Xbox marketing campaigns in Japan are doing miserably.
  
  And this is given Asian players are big time RPG players, which Xbox lacks, but hopefully the endorsement from Square Enix will boosts its xbox sales in Japan.

  13.9.2007 07:58 #7

• emugamer

  Originally posted by rihgt682: @wierdname, that's not true at all. japaness people like to support they're company and not anyone eles. They have a huge pride thinking they are better than anyone eles in the world. Microsoft is american country and that could be the issue. Because PS3 has no games right now and it's selling soo much more than 360. while 360 has great title.This statement definitely has some truth to it. And it's not borderline racist. There are parts of America where people only buy American made products, thinking that America is the best - or just because they want to support the American economy. That's not racist. It's stating a fact. rihgt682 said that this could be the issue. Not that it is the issue. But aside from that, I agree that the quality of the product is also a major factor. Japan hasn't always sold us the greatest quality cars. They've improved their product and in many cases, surpassed America engineering. I know many people who stay away from American cars. Tables turn. MS may have a chance at gaining Japanese converts in due time, as long as they can prove a reduced their failure rate and offer games that can get their attention.

  13.9.2007 08:04 #8

• Riotard

  Funny thing is the new 360's they are makign now WONT BREAK with the ring of death! BECUASE TEH&Y HAVE THE PATCH OUT FOR IT NOW! as an article on here has already staed, so ppl who say :O OMG OMG OMG RING OF DEATH THATS THe problem then burn someone for statin gthe correct facts.
  
  I ahve friends in japan, and soem that live in england, their parents wouldn't actually allow them to buy 360's becaue theya re american and they got ps3's instead!
  
  Most Japanese ppl are like taht, they are stubborn and ignatant that another country might have built something better then them, so they choose not to buy it.
  
  Also taht fact that japanese ppl like RPG's so they can cosplay and not FPS online! the fact taht the 360 has only rele had obvlion means they only have 1 game they WANT to actually play because they only liek that, and are stubborn and wont expand their gaming experiance! ITS ONLY RPG@S for the general japanese community!

  13.9.2007 08:16 #9

• kyo28

  Quote:i dont think his comment is nonesense at all.there is some truth to his comments and its his opinion.and that is what we do here share facts and opinions.so his comments being nonsense is your OPINION.
  I wasn't stating an opinion, I was stating a fact.
  It's a fact that Japanese consumers value quality, brand recognition and customer support over price.
  It's also a fact that there are foreign brands that sell well in Japan, provided they adapt to the Japanese market.
  
  So yes, opinions that are clearly disregarding facts are nonsense for me. For all those that delude themselve into thinking that the Xbox brand sells poorly because it's not Japanese DO SOME RESEARCH before posting please. Here's an interesting article to start:
  
  http://seekingalpha.com/article/6435-coa...uxury-items-coh
  
  COACH is an American brand and is selling very well in Japan, even obtaining up to 20% of the handbag market in Japan, where there's a lot of competition. So tell me fanboys, where does this fit into your "they don't buy it because it's American" theory, hm? Care to explain that one to me in a rational way?

  13.9.2007 10:02 #10

• 26r0cK

  Maybe to Japan, American products are as bad as how Chinese products are bad to America? lol :P

  13.9.2007 11:10 #11

• WierdName

  My comment was merely one side of the issue. I think that part of the reason is MS' reputation for the "red ring of death" issue. MS may have fixed it now, but it still has the rep for it. It's like the finger issue with Wendy's. Once people found out about it, sales dropped dramatically. Sales didn't return until they were cleared of the charges and the person that claimed it dropped the case because they started to investigate her for planting it. If they had been charged with the finger, would you eat there? Probably not. It's just the rep. There are most likely also other issues but my comment was just one side.

  13.9.2007 11:41 #12

• vinny13

  Quote:Quote:i dont think his comment is nonesense at all.there is some truth to his comments and its his opinion.and that is what we do here share facts and opinions.so his comments being nonsense is your OPINION.
  I wasn't stating an opinion, I was stating a fact.
  It's a fact that Japanese consumers value quality, brand recognition and customer support over price.
  It's also a fact that there are foreign brands that sell well in Japan, provided they adapt to the Japanese market.
  
  So yes, opinions that are clearly disregarding facts are nonsense for me. For all those that delude themselve into thinking that the Xbox brand sells poorly because it's not Japanese DO SOME RESEARCH before posting please. Here's an interesting article to start:
  
  http://seekingalpha.com/article/6435-coa...uxury-items-coh
  
  COACH is an American brand and is selling very well in Japan, even obtaining up to 20% of the handbag market in Japan, where there's a lot of competition. So tell me fanboys, where does this fit into your "they don't buy it because it's American" theory, hm? Care to explain that one to me in a rational way?How do you compare a purse to an electronic gaming console?
  
  I completely agree with the comments above saying that the 360 is selling poorly because it's American. The Japanese take a huge pride in their work and so on, and are some of the hardest working people. An example of their quality and effort is their cars(Toyota, Honda, Mazda, ect.). Their cars last a lot longer(through my dad's experiences) then Ford and GM and they're easier to work with. An example is, my father bought a Thunderbird and a year later, the paint on the hood started bubbling and chipping off. The car was still under warranty and he called up Ford to repaint it and they wouldn't do it and they game him a lame excuse too. It then died 4 years later. He hasn't bought a Ford ever since.
  
  Now with that said, if I were Japanese, I'd rather support my country then some other one.

  13.9.2007 11:59 #13

• redux79

  "Funny thing is the new 360's they are makign now WONT BREAK with the ring of death! BECUASE TEH&Y HAVE THE PATCH OUT FOR IT NOW! as an article on here has already staed, so ppl who say :O OMG OMG OMG RING OF DEATH THATS THe problem then burn someone for statin gthe correct facts."
  
  As far as I know 360's with the 65 nm falcon chips haven't hit store shelves yet. I haven't heard of any offical release date from MS either. I've been holding out on buying a 360 in the hopes the revisions to the new model will prevent the overheating problem.
  
  Has any one else heard of a patch that can prevent faulty hardware from failing? the 360's that don't have the new chips in them are still of the old design, so i really don't see how they wouldn't have the same 30% failure rate.

  13.9.2007 14:17 #14

• saltynuts

  Originally posted by kyo28: Quote:i dont think his comment is nonesense at all.there is some truth to his comments and its his opinion.and that is what we do here share facts and opinions.so his comments being nonsense is your OPINION.
  I wasn't stating an opinion, I was stating a fact.
  It's a fact that Japanese consumers value quality, brand recognition and customer support over price.
  It's also a fact that there are foreign brands that sell well in Japan, provided they adapt to the Japanese market.
  
  So yes, opinions that are clearly disregarding facts are nonsense for me. For all those that delude themselve into thinking that the Xbox brand sells poorly because it's not Japanese DO SOME RESEARCH before posting please. Here's an interesting article to start:
  
  http://seekingalpha.com/article/6435-coa...uxury-items-coh
  
  COACH is an American brand and is selling very well in Japan, even obtaining up to 20% of the handbag market in Japan, where there's a lot of competition. So tell me fanboys, where does this fit into your "they don't buy it because it's American" theory, hm? Care to explain that one to me in a rational way?
  
  
  
  
  well can you explain why the first xbox failed in japan also its the ms name

  13.9.2007 14:46 #15

• emugamer

  Quote:Quote:i dont think his comment is nonesense at all.there is some truth to his comments and its his opinion.and that is what we do here share facts and opinions.so his comments being nonsense is your OPINION.
  I wasn't stating an opinion, I was stating a fact.
  It's a fact that Japanese consumers value quality, brand recognition and customer support over price.
  It's also a fact that there are foreign brands that sell well in Japan, provided they adapt to the Japanese market.
  
  So yes, opinions that are clearly disregarding facts are nonsense for me. For all those that delude themselve into thinking that the Xbox brand sells poorly because it's not Japanese DO SOME RESEARCH before posting please. Here's an interesting article to start:
  
  http://seekingalpha.com/article/6435-coa...uxury-items-coh
  
  COACH is an American brand and is selling very well in Japan, even obtaining up to 20% of the handbag market in Japan, where there's a lot of competition. So tell me fanboys, where does this fit into your "they don't buy it because it's American" theory, hm? Care to explain that one to me in a rational way?Well, reading through all of the comments again, I still can't tell who are the fanboys you are referring to. It used to be "attack of the fanboys." Now it's more like "attack of the people who call everyone a fanboy." No one said that Japanese pride is the only reason why the XBOX is flopping. It's only a single theory, that happens to be a good one. You don't need to do research to have an opinion like that. Having an understanding of social behavior comes from life experience. Maybe you should put some fuel in that blowtorch before you start flaming. You just come off as a rude person.

  13.9.2007 14:57 #16

• Ofnir1

  Originally posted by rihgt682: @wierdname, that's not true at all. japaness people like to support they're company and not anyone eles. They have a huge pride thinking they are better than anyone eles in the world. Microsoft is american country and that could be the issue. Because PS3 has no games right now and it's selling soo much more than 360. while 360 has great title.And how do you know that's true? Honestly, do you have any idea how moronic that sounds? The 360 has great titles, but such titles appeal to more Americans than the Japanese. Think of it this way, imagine if all the games for PS2 were released for the XBOX, and all of the games for XBOX were released for the PS2, then the XBOX would have sold more in Japan. Same goes for PS3 and 360 sales :)
  
  As far as pride goes, I can see how they got their pride. I don't ever remember an American made video game console/handheld existing during the days of NES, SNES, NeoGeo, Saturn, GameBoy, 3DO, GameBoy Color, etc., there were just American devs. Correct me if I'm wrong, but the first ever American made video game console is the XBOX, right?

  14.9.2007 00:59 #17

• 24Lover

  Jap's love RPG's & 360 just just don't have any that appeal to them(Blue Dragon..lol cmon).But Xbox didn't sell good also because most of the games that was on the Xbox was ports from PS2.If the product is good Jap's will buy it & don't have a problem spending money like other country's.

  14.9.2007 03:26 #18

• xyqo

  @Ofnir1 wasn't 3DO an American console?
  
  And in reality you Americans created video game consoles
  Magnavox Odyssey the first console was an American product
  
  Quote:Ralph H. Baer (born March 8, 1922) is a German-born American inventor, noted for his many contributions to games and the video game industry. In 2006, he was awarded the National Medal of Technology for inventing the home console for video games and spawning the video game industry. 'Wikipedia'
  
  So even though he's German born it was invented in the states so you all really own video games i guess ;)
  

  XXYYQQOO!!! Yeah WELCOME TO JAMROCK ------ DRIVA don't stop at all!!!
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  Want to watch movies on your cell phone? Read my guide first http://forums.afterdawn.com/thread_view.cfm/374932#2242843
  
  

  14.9.2007 09:16 #19

• kyo28

  I can give plenty of examples, not just within the handbag sector, where foreign brands are selling well in Japan. Just to name a few:
  - Coca Cola (not their cokes are selling best, but their brand of Japanese tea and water)
  - Mc Donalds (again, they adapted their products to Japanese consumers, with among others teriyaki burger)
  - Chanel, Lancome (French cosmetics are selling very well with colors for foundation that are specifically aimed at Japanese)
  
  I'll concede one point, though, and it's that the sector of cars and high tech is very competitive in Japan since they already have a lot of succesful local brands. But that's not a valid reason to state that Japanese turn away from a product because it's foreign.
  
  Japanese consumers are the most demanding worldwide and companies that can adapt their product to their taste and offer the high quality service they require will succeed, no matter they are foreign or not.
  
  I learned that the hard way when the company I worked for made a temporary joint-venture with a Japanese company.

  14.9.2007 10:01 #20

• Ofnir1

  Quote:@Ofnir1 wasn't 3DO an American console?
  
  And in reality you Americans created video game consoles
  Magnavox Odyssey the first console was an American product
  
  Quote:Ralph H. Baer (born March 8, 1922) is a German-born American inventor, noted for his many contributions to games and the video game industry. In 2006, he was awarded the National Medal of Technology for inventing the home console for video games and spawning the video game industry. 'Wikipedia'
  
  So even though he's German born it was invented in the states so you all really own video games i guess ;)lol I wouldn't say that we own it, but thanks for correcting me :) I always thought the Magnavox Odyssey was created in another country.

  14.9.2007 13:35 #21

• saltynuts

  Originally posted by Ofnir1: Originally posted by rihgt682: @wierdname, that's not true at all. japaness people like to support they're company and not anyone eles. They have a huge pride thinking they are better than anyone eles in the world. Microsoft is american country and that could be the issue. Because PS3 has no games right now and it's selling soo much more than 360. while 360 has great title.And how do you know that's true? Honestly, do you have any idea how moronic that sounds? The 360 has great titles, but such titles appeal to more Americans than the Japanese. Think of it this way, imagine if all the games for PS2 were released for the XBOX, and all of the games for XBOX were released for the PS2, then the XBOX would have sold more in Japan. Same goes for PS3 and 360 sales :)
  
  As far as pride goes, I can see how they got their pride. I don't ever remember an American made video game console/handheld existing during the days of NES, SNES, NeoGeo, Saturn, GameBoy, 3DO, GameBoy Color, etc., there were just American devs. Correct me if I'm wrong, but the first ever American made video game console is the XBOX, right?i think atari is in that mix also

  14.9.2007 14:42 #22

• khairul

  Atari rules!

  14.9.2007 18:21 #23

• borhan9

  Well this seem to be just the start of a long and uphill road ahead for Microsoft.

  14.9.2007 18:24 #24

• Ofnir1

  Originally posted by saltynuts:
  i think atari is in that mix alsoNotice the word 'etc' in there? :)
  

  
  

  14.9.2007 19:35 #25

• salsa36

  Quote:japaness people like to support they're company and not anyone elesAsians support their products only, they will never accept anything else. Microsoft can keep trying but asians won't buy american stuff, moreover they kind of don't like much americans and their sompanies. We are the only ones that love to play like ninjas, samurais and buy asian products (including cars)
  
  It would be nice for everybody to support our products and industry as they do...............

  22.9.2007 09:26 #26