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This chapter provides an overview of the Japanese video game industry (published in Wolf's _Video Games Around the World_). Sections include Sections in this chapter include: • Challenges to Studying Computer Games in Japan • Who Plays Computer Games? • Japan’s Early Game Industry: SEGA, Namco, Taito, and Nintendo • Home Consoles and Handheld Devices: A Nation That Plays Games o Nintendo o SEGA o Sony • Game Centers, Game Parlors, and the Performance of Gaming • Social Gaming in Japan: DeNA, Gree, and Mixi • Censorship and Rating Systems • “Our Game Industry Is Finished”: The Present and Future State of Computer Games in Japan

PROPERTY OF THE MIT PRESS FOR PROOFREADING, INDEXING, AND PROMOTIONAL PURPOSES ONLY JAPAN Jennifer deWinter Japan is a densely populated island country with a population of 127.52 million as of 2012 (“Statistical Handbook of Japan” 2013) coupled with an active US military population of 39,222 (Department of Defense 2011). Since the late 1970s, Japan has had a strong role in the international computer game market, developing both successful hardware and software brands. This success is of particular note when compared to the rather weak-performing IT industries in Japan (Casper and Storz 2012; Azuma et al. 2009). The Japanese game industry’s success may be attributed to the rather strong influences of related entertainment industries, such as manga and animé (Kohler 2004; Allison 2006; deWinter 2009), as well as a rather long history of gambling in the form of pachinko and Hanafuda. Japan was a dominant force in the computer game and related industries throughout the 1980s and 1990s, leading to the catchy phrase “gross national cool” (McGray 2002) to describe their entertainment exports; however, the 2000s saw a rise in anxiety regarding the “collapse” of the Japanese game industry as strong game competitors began emerging in the United States and Europe while a strong entertainment competitor began rising in South Korea. Nevertheless, export data and critical reviews suggest that the Japanese computer game market continues to be a strong force in both Japanese and global markets. Challenges to Studying Computer Games in Japan Japan is the third most powerful computer game market after the US and Europe as a collective whole, based on sales figures (as can be seen in the 2012 aggregate data presented in VG Chartz, as well as in the annual reports of Nintendo, Sony, Namco, and Capcom). However, the Japanese game industry does not work in a national vacuum. The Japan External Trade Organization (JETRO) 2007 report, which traces Japan’s international connections through import/export sales and company buyouts and mergers, has collected data that illustrate the international nature of the Japanese computer game industry. Japanese companies often have overseas offices (such as Nintendo in the United States), making it more difficult to demarcate the national boundaries of ownership and historical exigency. Further, Japanese hardware and consoles have had a strong Wolf—Video Games Around the World Pr PROPERTY OF THE MIT PRESS FOR PROOFREADING, INDEXING, AND PROMOTIONAL PURPOSES ONLY 320 JENNIFER DEWINTER presence in the gaming industry from very early on, affecting the distribution of international games through hardware specifications and distribution agreements (“Japanese Video Game Industry” 2007). Indeed, Nintendo got its start in the video game industry in 1974 by becoming the distributor of the Magnavox Odyssey in Japan. In addition to the international dialectic of the Japanese gaming industry, the well-documented fact that this industry is intimately connected to other entertainment media often makes it difficult to talk about games in isolation. For example, the dialectical histories of animé, manga, toys, and computer games often mean that creations in one medium are used to sell creations in other media. In its simplest form, this means that properties are being adapted from one medium to another. In other cases, they are used in a type of serial narrative that ends in one medium and picks up in another (deWinter 2004). In addition to this mediavampirism, there is the propagation of gamic memes in other media. For example, in the animé Excel Saga (Koshi 1999) and Magical Shopping Arcade Abenobashi (Akahori 2002), computer game interfaces become the metaphors for expressing emotions and relationships, such as the four-part option sequence (in response to a girl asking you whether you will go to the school fair, you can answer: (A) Ignore her; (B) Tell her yes, with another girl; (C) Tell her yes; (D) Tell her yes and ask her if she would like to come with you) commonly found in dating sim games. As a result, there will be a certain amount of bleed throughout this chapter in discussing Japan in both a national and global context as well as Japanese computer games as one part of a complex media landscape. Who Plays Computer Games? Pr According to an Enterbrain, Inc. report (reported in GMOCloud 2012), 56% of console gamers are male and 44% are female. Of those numbers, 36% are younger than eighteen years old, 28% are between eighteen and thirtyfive years old, and 36% are older than thirty-six (GMOCloud 2012). Further refining these numbers shows that there is a trend of women gamers over fifty years old playing console games, thanks in large part to DS games such as Brain Training (2005) (Brain Age in the US) and Nintendogs (2005) (Leyton 2006; Nouchi et al. 2012). These numbers vary slightly for Japanese social gamers. According to 2011 financial report data from Gree, DeNA, and Mixi, 54% of social gamers are men and the other 46% are women. The demographic demarcations provided indicate that 19% are nineteen years old and younger, 41% are between the ages of twenty and twentynine, and the remaining 41% are thirty years old and above. The trend, according to DeNA’s Mobage (2011), is for the demographic to shift toward older players; in 2009, for example, 26% of players were over thirty versus 41% in 2011 (Toto 2011). The over-fifty gamer set will become more important to the Japanese gaming industry as the population continues to age. Japan’s National Institute of Population and Social Security Research (2012) anticipates a steady increase of the above-sixty-five population to climb from more than 30 million in 2012 to a peak in 2042 with 38.78 million, only to stabilize at 34.64 million by 2060. In other words, by 2060, approximately 40% of Wolf—Video Games Around the World The remainder of Japan has been redacted for Copyright purposes. The full text is available in Video Games Around the World, edited by Mark J. P. Wolf from MIT Press (2015). Sections in this chapter include: • Challenges to Studying Computer Games in Japan • Who Plays Computer Games? • Japan’s Early Game Industry: SEGA, Namco, Taito, and Nintendo • Home Consoles and Handheld Devices: A Nation That Plays Games o Nintendo o SEGA o Sony • Game Centers, Game Parlors, and the Performance of Gaming • Social Gaming in Japan: DeNA, Gree, and Mixi • Censorship and Rating Systems • “Our Game Industry Is Finished”: The Present and Future State of Computer Games in Japan