25 years ago, Japan controlled 50% of the global video game market. Today, it is under 10%. What is the cause of this decline? And what is Japan’s future in this $135 billion US dollar industry?

Throughout the 80’s and 90’s Japan was a dominant force in video games, with mega hits in the gaming arcades such as Pac Man, and then they dominated the console market with Nintendo and Sega who brought the world games such as Mario and Sonic. By 1995, Japan controlled 80% of the global console market.

However, close regional competiton started to emerge. And they soon began to have a massive impact on the way the world played video games. Communal game playing in Korea’s so called ‘PC Bangs’ in the late 90’s also gave birth to eSports, and in China, mobile gaming exploded over the last ten years.

But Japan is not taking things lying down. With new developments in the past few years like Nintendo Switch and gaming favourites like Animal Crossing, Japan looks set to make a comeback.

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