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X360 Slow start in Japan

Posted: 2005-12-13 09:21pm
by Medic
Is there any doubt Japanese consumers are partial when it comes to America's only console system?
Xbox 360 gets soft start in Japan

Tuesday, December 13, 2005; Posted: 9:31 a.m. EST (14:31 GMT)

TOKYO, Japan (AP) -- Microsoft Corp.'s new Xbox 360 video game console got a lukewarm welcome in Japan on its debut weekend with fans buying fewer than half the games available in stores, a market researcher said Tuesday.

Microsoft, which started selling the Xbox 360 in Japan on Saturday, is trying to break into the world's second-largest video game market and challenge the longtime dominance of Sony Corp.'s PlayStation.

Microsoft sold 62,135 machines over the weekend, or just 39 percent of the 159,000 consoles it is estimated to have shipped to stores, according to data from market researcher Enterbrain Inc.

The figures indicate a slower start than the original Xbox, which failed in Japan.

The first Xbox sold about 123,000 units in the first three days of its launch in 2002, according to Tokyo-based Enterbrain.

The Xbox 360 debuted last month in the United States to winding lines of customers to snag machines and top billing on Christmas wish lists. Japanese gamers may still be waiting to see what Sony's upcoming PlayStation 3 looks like.

Sony has locked up about 80 percent of the Japanese market, compared with Xbox's 5 percent, and is planning to release its next-generation PlayStation 3 early next year, although a date has not been announced.

Xbox had been hoping its earlier release would win converts.

But Enterbrain said some stores reported customers canceling pre-reserved Xbox 360s because of the postponed release of the popular game "Dead or Alive 4." Still, despite the slow start, Enterbrain said there was still "plenty of room" for Xbox 360 to increase its market share as more titles come to market.

Redmond, Washington-based Microsoft is planning to release 10 titles in Japan this month and has 100 in development.

Microsoft Japan President Darren Huston told The Associated Press Saturday his company aims to sell 1 million Xbox 360s in Japan by mid-2006. That compares with just 1.8 million original Xbox units sold in Asia, including Japan, in its first three years. Worldwide, Microsoft is aiming to ship between 2.75 million and 3 million machines within 90 days of the U.S. launch.

Microsoft's first Xbox got off to a rocky start in Japan, where some of the world's most dedicated and finicky gaming fans were turned off by its design, limited game selection and perceptions of shoddy quality.

Microsoft has made a point this time of signing on designers popular here to make games exclusive for Xbox 360, such as "Final Fantasy XI." The company also redesigned the clunky black case, with help from Japanese teams, to create a streamlined, pearl-white look that is more appealing to Japanese tastes.

The first Xbox's tendency to scratch disks also ruffled feathers in Japan. While the problem didn't affect the game's performance, it was viewed as a symptom of poor attention to detail.

It is unclear how Japanese might react to reported problems in the Xbox 360 that cause it to crash in the middle of games.

Huston said Saturday those incidents are "quite isolated" and added that there is a Japanese hot line for customers to call if they experience problems and that the company will replace free-of-charge faulty equipment.
I wasn't aware that the old X-Box tended to scratch discs and that, although it had little if no effect on performance, was percieved badly as lack of attention to detail.

So excuse me while I puke on my 3rd fucking Playstation 2. The first 2, the older, larger version burned out, the first one in months; the second in a little over a year. Both of those systems my brother and I noted a correlation with increased DVD-movie playback with increased "disc read error" messages. Not all systems were bad but what are the chances? I still refuse to play DVD's on my PS2 and it's worked perfectly. :shrugs:

On a related note, are that many people really holding back that much for the PS3? Can this be chalked up to consumer brand loyalty / bias, a perception of PS3's graphical superiority or consumer ignorance? I've heard from a lot of people how they're holding out for PS3 and I always ask them: "you know how expesive it's going to be?

I'm not saying X360 is teh uber great, I'm saying it's next-gen, it's here and it's now. We know the prices and we know the capabilities. Launches nowadays always seem to be accompanied by some shoddy workmanship but for most systems these are remedied if not conquered outright (even if an unfortunate few have to wade through multiple systems :x ). For the record, I don't own one and my favorite game on any console or computer, is Soul Caliber 3 on Playstation 2.

PS3 is also next-gen but not here or now and we won't really know how it performs till it's out there in store-kiosks and ultimately, people's living rooms. And of course it may cost as much as $500. Of course, nothing's in stone yet but I'm not holding my breathe for some drastic price-drop.

edit: that many

Re: X360 Slow start in Japan

Posted: 2005-12-13 09:38pm
by Master of Ossus
PFC Brungardt wrote:I wasn't aware that the old X-Box tended to scratch discs and that, although it had little if no effect on performance, was percieved badly as lack of attention to detail.
It was a very common problem with the X-Box. One of my friends RUINED one of a hard-to-find DVD of mine when he played it in his X-Box.
On a related note, are that many people really holding back that much for the PS3? Can this be chalked up to consumer brand loyalty / bias, a perception of PS3's graphical superiority or consumer ignorance? I've heard from a lot of people how they're holding out for PS3 and I always ask them: "you know how expesive it's going to be?
Historically, the Japanese market hasn't responded well to consoles until they release games that are considered popular in Japan. Of the 360 line-up, right now, ONLY Kameo has any sort of cross-cultural appeal whatsoever.

I mean, look at the list:

* Amped 3 (2K Sports)
* Call of Duty 2 (Activision)
* Condemned: Criminal Origins (SEGA)
* FIFA 06: Road to FIFA World Cup (Electronic Arts)
* GUN (Activision)
* Kameo: Elements of Power (Microsoft Game Studios)
* Perfect Dark Zero (Microsoft Game Studios)
* Peter Jackson's King Kong: The Official Game of the Movie(Ubisoft)
* Madden NFL 06 (Electronic Arts)
* NBA Live 06 (Electronic Arts)
* Need for Speed: Most Wanted (Electronic Arts)
* Project Gotham Racing 3 (Microsoft Game Studios)
* Quake 4 (Activision, id software and Raven Software Corp.)
* Tiger Woods PGA TOUR 06(Electronic Arts)
* Tony Hawk's American Wasteland (Activision)

To a Japanese consumer, that's about the shittiest line-up ever made for a console's release line-up. The article also noted that many consumers canceled their pre-orders because DoA:4 wasn't going to be released, so the problem is pretty clearly with their library. And, frankly, XBox did a downright terrible job of marketing in Japan and released VERY few games that Japanese consumers were happy with.

Posted: 2005-12-13 09:42pm
by Medic
Well Microsoft is taking that a little more seriously. If something like an X360-based Final Fantasy game were to happen, that'd be the ultimate test. That being a little optimistic and extreme of a case, I suppose I'll just keep my eyes peeled for this and that Japanese game.

Posted: 2005-12-13 09:45pm
by weemadando
Of course, it might help if a) most of the release titles weren't rubbish (from what I've heard) and b) the Japanese didn't have this strange obsession with rubbish games (like FF and terribly done excuses for TnA).

Posted: 2005-12-13 10:08pm
by Praxis
I'm pretty sure I read that Perfect Dark Zero hasn't been released in Japan yet.

Posted: 2005-12-13 10:11pm
by Spanky The Dolphin
If the Xbox failed in Japan, I really don't see why Microsoft would even bother try with the 360...

Posted: 2005-12-13 10:23pm
by Lost Soal
PFC Brungardt wrote:Well Microsoft is taking that a little more seriously. If something like an X360-based Final Fantasy game were to happen, that'd be the ultimate test. That being a little optimistic and extreme of a case, I suppose I'll just keep my eyes peeled for this and that Japanese game.
There doing FF XI. Fair enough, but what does that mean. XI already exists, so does that mean it will simply be a port, or a new game entirely.
There current trend on poprts for the 360 is borderline criminal. Gun, Quake 4 and other games already available on the XBox are made into 360 versions which sell for the normal "Next Gen Price" of £50, have no additional content and not only look worse, but play worse.

Posted: 2005-12-13 10:32pm
by SirNitram
Spanky The Dolphin wrote:If the Xbox failed in Japan, I really don't see why Microsoft would even bother try with the 360...
Because Microsoft is trying very hard to become a major player in console gaming. What everyone forgets from all the X-Box hype is that they got maybe 20 percent of the market.

I'm kind of blinking at the 'IT'S NEXT GEN! IT'S NOW!!!!! BUY NOW!!! DON'T WAIT!!!!!!' You're talking to someone who was years late with both the NES and SNES, got the N64 as a gift a while late, and only saw a PS2 because the girlfriend(At the time) was a huger FF fan than I am. There is no compulsion to get it because it's NEXT GEN!!!!!! What does the Next Gen do for me? None of the games on the X-Box lineup at release interest me. Very few announced register a twitch. Meanwhile, I've got Katamari which is addictive as fuck and doesn't require me getting a new system, and there's a new one after I'm done with this one.

Posted: 2005-12-13 11:43pm
by DPDarkPrimus
The best-selling game on the X-Box over in Japan only sold about 217,000 copies.

Really, that says all you need to know right there.

Posted: 2005-12-14 01:01am
by Edward Yee
Let's sum it up this way: Because Metal Gear Solid 4: Guns of the Patriots will not be for Xbox 360. :lol:

For the individual gamer, personal procurement of consoles isn't a race against anyone (most of the time). Also, graphics are not THE issue for everyone; I didn't buy an Xbox because I didn't need either the graphics or the online, ditto for the Gamecube. I got a PS2 because I needed the system with the games (franchises) that I wanted... in English. :P

Is it just me, or has Playstation 2 been the biggest, best-selling of the three main systems (PS2, Xbox, Gamecube)?

Posted: 2005-12-14 01:24am
by Master of Ossus
Edward Yee wrote:Is it just me, or has Playstation 2 been the biggest, best-selling of the three main systems (PS2, Xbox, Gamecube)?
It's EASILY the best-selling of the three main systems, and even more so in Japan than in the US.

Posted: 2005-12-14 02:02am
by SirNitram
Seventy percent of the market went to the PS2. 20 to the X-Box. I beleive ten went to Gamecube.

Posted: 2005-12-14 02:56am
by Praxis
SirNitram wrote:Seventy percent of the market went to the PS2. 20 to the X-Box. I beleive ten went to Gamecube.
Actually I believe it was XBox 16, GameCube 14, 70 PS2.

After double checking:

Ah, here it is.

Worldwide Hardware Sales (End of June 2005)
PS2 - 91 million
Xbox - 21.9 million
GameCube - 18.76 million
Game Boy Advance - 67.77 million
Nintendo DS - 6.65 million
PSP - 5.06 million

Quick calculations give Microsoft a 16.63% market share, Nintendo a 14.25% market share, and Sony a 69.12% market share, for consoles.


Nintendo was slightly more than 2% behind Microsoft. Microsoft never had a 20% marketshare.

If we do the handhelds, Nintendo's marketshare is ridiculously high.


Nintendo didn't do too bad, considering that the GameCube is the most profitable per system sold. The PS2 and PSP were sold at a small loss, the XBox was sold at a massive loss, and the GameCube was sold at a profit, plus most GameCube owners buy a lot of first party games. Count in the dominance in handhelds...if you check the posted profits for each company's games divisions, Nintendo wipes the floor with Sony and Microsoft (although Sony's revenue is much higher).

Posted: 2005-12-14 03:04am
by wautd
One of the reasons I heared was like "I wait at the PS3 because when it comes out a few months later, the technology will be better and further ahead by then" :roll:

I hate fanboys but between the big 3, Sony fanboys are not only the most annoying, they also seem a lot more stupid

Posted: 2005-12-14 05:21am
by Archaic`
Praxis wrote:I'm pretty sure I read that Perfect Dark Zero hasn't been released in Japan yet.
Gaming blog Kotaku had photos up of a Japanese gamer holding his copy of PDZ, so it's certainly out there.
Praxis wrote:...if you check the posted profits for each company's games divisions, Nintendo wipes the floor with Sony and Microsoft (although Sony's revenue is much higher).
Correct me if I'm wrong, but I'm sure I heard somewhere that Nintendo's profits actually matched or beat the profits of the entire Sony corperation, not just its gaming division.

Posted: 2005-12-14 05:58am
by Xon
Archaic` wrote:Correct me if I'm wrong, but I'm sure I heard somewhere that Nintendo's profits actually matched or beat the profits of the entire Sony corperation, not just its gaming division.
That isnt hard, Sony's over all profits are quite shocking for a company of thier size.

Posted: 2005-12-14 06:15am
by Mobius
Ridge Racer 6 isn't out there?
i thought it would be one killer app (apart from the mediocrity of the RR series as a racing game) for the japanese release of the 360.

Ghetto Edit: Praxis, in your numbers, are the GBA and GBAe SP together?

Posted: 2005-12-14 06:26am
by GuppyShark
As if it matters how well the console does in Japan... There are like, three Japanese game studios with any sort of Western pulling power.

Well, I'm not really a console gamer, even if I do have a few DOA3 titles under my belt. Is it just part of console culture that your console of choice must be liked by people who happen to live in Japan? :P

Posted: 2005-12-14 08:59am
by Arthur_Tuxedo
There are something like 250 million people in Japan, and they seem to love their video games, so I'd say yes :)

Posted: 2005-12-14 09:52am
by Master of Ossus
Archaic` wrote:
Praxis wrote:...if you check the posted profits for each company's games divisions, Nintendo wipes the floor with Sony and Microsoft (although Sony's revenue is much higher).
Correct me if I'm wrong, but I'm sure I heard somewhere that Nintendo's profits actually matched or beat the profits of the entire Sony corperation, not just its gaming division.
Quite possibly. The massive savings rate in Japan tends to drive down the rate of return on investments, so small and innovative companies will have a better chance of making serious profits than huge ones with multiple divisions.

Posted: 2005-12-14 09:57am
by Edward Yee
Hey, hey, hey now... ever hear of rationality on the macro scale vs. rationality on the micro scale? That's me, the latter, and I assume the majority of buyers. Yes, that's how capital fleeing works, but that makes us innocents in the console wars.

I don't know this "Sony fanboyism" that wautd speaks of, but it's irrelevant in my case. It comes out later, yes, but I actually don't expect it to gain in technology over the course of the release time difference. I stuck with PS2 while admitting its graphics inferiority to Xbox, because graphics was never why I bought PS2 to begin with. I got it at launch (believe it or not) because it was the next-gen console with backwards compatibility (turned out to be MUCH less replay value though than PS3->PS2) with the game I wanted: wait for it... Dynasty Warriors 2. :lol:

In the end, Xbox 360 won't support Samurai Warriors (PS2, 2004) and Samurai Warriors 2 (PS2, 2006). PS3 will through backwards compatibility and wins my dollars by default. :twisted:

Posted: 2005-12-14 01:01pm
by Praxis
Archaic` wrote:
Praxis wrote:I'm pretty sure I read that Perfect Dark Zero hasn't been released in Japan yet.
Gaming blog Kotaku had photos up of a Japanese gamer holding his copy of PDZ, so it's certainly out there.
Praxis wrote:...if you check the posted profits for each company's games divisions, Nintendo wipes the floor with Sony and Microsoft (although Sony's revenue is much higher).
Correct me if I'm wrong, but I'm sure I heard somewhere that Nintendo's profits actually matched or beat the profits of the entire Sony corperation, not just its gaming division.
Okay, nm then on PDZ.

Here's the chart for the gaming divisions.

http://forum.pcvsconsole.com/viewthread ... 760&page=5

Sony has the highest revenue. Nintendo has the highest profits. Microsoft's profits are ALWAYS negative except Q4 2004.

Directly below the chart is this:
Forbes 2000 with data as of February 28, 2005.

Sales
Microsoft: $38.47 billion
Nintendo: $4.93 billion
Sony: $71.82 billion
Electronic Arts: $3.17 billion

Profits
Microsoft: $10.00 billion
Nintendo: $0.32 billion
Sony: $0.85 billion
Electronic Arts: $0.59 billion

Assets
Microsoft: $64.94 billion
Nintendo: $9.59 billion
Sony: $85.14 billion
Electronic Arts: $4.44 billion

Market Value
Microsoft: $273.75 billion
Nintendo: $14.47 billion
Sony: $35.40 billion
Electronic Arts: $19.86 billion
Remember, Nintendo only does games. Sony does TVs, computers, cameras, etc, etc.

Overall, Nintendo made 0.32 billion and Sony 0.85 billion (this is the whole company, not the gaming division, which made much less).

Nintendo's games division makes the most of any of the three console companies.

Posted: 2005-12-14 01:28pm
by Silver Paladin
If Japan doesn't want it, SEND SOME THE FUCK BACK HERE DAMMIT.

Posted: 2005-12-14 01:38pm
by Arthur_Tuxedo
Check out how low Sony's market value is compared to its assets. Yikes! And their ROI is pathetic. Nintendo's isn't exactly rosy, either, though. Enough to keep them afloat, but not what you would really call successful.

Posted: 2005-12-14 01:40pm
by Shogoki
Maybe the japanese are just smart enough to realize it's not worth buying at this time, though we all know they just didnt get brainwashed like oh so many american gamers.