Square Enix: the Japanese market is no longer sufficient to amortize the investment, the global market is now the priority
Square Enix expressed the inevitable and that is that the Japanese video game market is no longer the priority for companies because it is no longer sufficient to recover the company’s development investments and generate a profit. The Japanese video game market has changed significantly over the years, with the majority of gamers playing games on their smartphones and Switches. As such, iOS and Android devices have now become the most popular devices for playing video games in Japan. Square Enix now says it will prioritize foreign markets. Sony has also hinted that it is focusing on Western markets with its PlayStation 5 console. The company has shut down its famous Japan Studio.
“Achieving major growth in the video game industry is now difficult for companies that compete primarily in the Japanese market, given its aging demographics. As such, it is critical to our business that we produce successful titles that are aimed at the global market, which offers greater scale in terms of customers and sales volumes, in other words, the Japanese market is no longer enough to reach a level of revenue that allows us to recover our development investments and generate a profit, and so we must approach our development efforts on the premise that we must succeed in the global marketplace.”
Yosuke Matsuda, President and Managing Director of Square Enix