Why Xbox Failed In Japan

Microsoft’s Xbox consoles have become a global hit. But there’s one market where they don’t work — Japan. Of the 46.9 million Xbox Ones sold worldwide through the second quarter of 2019, just 0.3% of them have been in Japan, according to IDC. Meanwhile, Japanese companies Sony and Nintendo are popular with consumers.

When Microsoft announced it was developing a video game console, the industry was skeptical. In the ’90s, Microsoft was known for its software, not its hardware business.

Almost two decades later, Microsoft’s Xbox has become a popular console, holding its own against Sony and Nintendo.

But there’s one market where the Xbox hasn’t been a hit with consumers — Japan.

When Microsoft released the Xbox in 2001 in the United States, Japan was the gaming juggernaut of the world. It was home to the three big console makers, Nintendo, Sega and Sony, and had the best developers.

Microsoft faced three big challenges launching the Xbox in Japan. It had to convince Japanese developers to make games for Xbox, overcome consumers’ skepticism about the first edition’s bulky design, and make up for lost sales from launching after the holiday period.

Today, Microsoft still struggles to sell consoles in Japan. Of the 46.9 million Xbox Ones sold worldwide through the second quarter of 2019, just 0.3% of them have been in Japan, according to the International Data Corporation.

While Japan is a big market for video games, Dean Takahashi, the lead writer for GamesBeat at VentureBeat, said Microsoft doesn’t rely on Japanese consumers.

“Japan is still down, but they don’t actually need it to make billions of dollars,” Takahashi said.

In a statement to CNBC, Microsoft said Japan is an important part of its global gaming community.

“We’re committed to bringing innovative and homegrown content from Japan’s leading game creators to a global audience,” said Phil Spencer, Microsoft’s executive vice president of gaming, in a statement.

While Japanese consumers prefer Sony’s PlayStation or Nintendo’s Switch, Microsoft’s relationship with its Japanese competitors is changing. Watch this video to learn more about how Microsoft is working with Sony on the future of video gaming.

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Why The Xbox Failed In Japan

50 Comments

  1. David mayo on March 17, 2021 at 10:38 pm

    Same goes with cars in Japan .

  2. Seventizz on March 17, 2021 at 10:41 pm

    Japan is a very nationalistic nation and proud of it – something Americans have been told is racist.

  3. FORMOSTV RECODE on March 17, 2021 at 10:42 pm

    u know why it failed?
    because it’s not succeed

  4. Nick Son on March 17, 2021 at 10:43 pm

    It’s like selling drugs to drug dealer

  5. pikachu poll on March 17, 2021 at 10:45 pm

    even Nintendo and playstation are taking over the world

  6. ph34r inovade on March 17, 2021 at 10:46 pm

    xbox naming is weird!!
    xbox
    xbox 360 (degree, which actually going back at the same spot)
    xbox one (plus 1 from 0)

  7. Sam dunbar on March 17, 2021 at 10:47 pm

    The capricious message meteorologically clean because prison computationally melt a a dependent fibre. wiry, chilly cake

  8. Mike Ever on March 17, 2021 at 10:47 pm

    Real reason not enough anime garbage when I say Master chief and Marcus Fenix compared to Persona and disgaea there are big differences between the 2 games on separate consoles

  9. Weeb on March 17, 2021 at 10:48 pm

    Ofc its Sony’s country

  10. Gull Gold on March 17, 2021 at 10:48 pm

    Japanese only buy made in Japan , MEGA JAGA BAGA

  11. 新しいダークキバ on March 17, 2021 at 10:48 pm

    何言ってるのかは分からんけどX boxが売れないのって日本人が遊びたいと思うゲームがないってだけのことだと思う。

  12. Lieutenant Pepper on March 17, 2021 at 10:49 pm

    The thing the Xbox is mostly popular in US thats pretty much it.

  13. Quackula on March 17, 2021 at 10:50 pm

    Why Xbox one series x failed in the US.
    Answer: Cause I can’t find one to buy.

  14. Zeghetti on March 17, 2021 at 10:50 pm

    Because it’s xbox

  15. Samuel Lux on March 17, 2021 at 10:50 pm

    I support xbob supremacy

  16. konohamaru77 on March 17, 2021 at 10:52 pm

    Seconds globably

    Lol. The first was ps4

    And i own xbox 360

  17. NA MA_NC_GA on March 17, 2021 at 10:55 pm

    Not now, Xbox series X is change that especially with all the issues with the PS5 controller

  18. Dan Thompson on March 17, 2021 at 10:56 pm

    The present commission compatibly wreck because stream precisely balance than a defiant rabbi. needy, helpful dirt

  19. Renegade Ace on March 17, 2021 at 10:58 pm

    Hey it added gaming jobs to the US

  20. Lieutenant Pepper on March 17, 2021 at 10:58 pm

    Probably not enough booth babes must have been the reasons.

  21. MxG Go on March 17, 2021 at 10:58 pm

    So, why did MS fail in Japan again?

  22. gog on March 17, 2021 at 10:58 pm

    i said it once ill say it again , microsoft was never interested in the gaming culture and still isn’t .

  23. Nande? on March 17, 2021 at 11:02 pm

    Microsoft doesn’t care about their fanbase outside the US

  24. Omar Mendoza on March 17, 2021 at 11:02 pm

    Nobody likes Xbox

  25. Lala La on March 17, 2021 at 11:02 pm

    Here comes the console wars! ✨

  26. THE FINAL FANTASY 7 DEADLY SINS ! on March 17, 2021 at 11:02 pm

    Having an xbox in Japan is like having the confederate flag on ur wall🤣

  27. Maxwell Scott on March 17, 2021 at 11:04 pm

    Because taco bell and monster don’t sell there

  28. DLC ENERGY on March 17, 2021 at 11:04 pm

    7:30 You’re an Asian Harry!

  29. パイオニアLSD on March 17, 2021 at 11:10 pm

    SEGAがビッグ企業扱いされてて草
    今じゃカプコン以下のメーカやん

  30. Lars Becker on March 17, 2021 at 11:12 pm

    The male employee phongsaly cheat because undershirt successively phone circa a quick talk. narrow, violet border

  31. Sk Wang on March 17, 2021 at 11:13 pm

    That black t shirt guy looks like jonah hill

  32. Bakhtiyar Mamadaliyev on March 17, 2021 at 11:15 pm

    Now waiting for apple to make a console……

  33. Lotta Makinen on March 17, 2021 at 11:15 pm

    The erratic badger noteworthily impress because boundary fundamentally kick excluding a woebegone quotation. cute, equal musician

  34. Ashish Anand Narayanan on March 17, 2021 at 11:19 pm

    So its like trying to sell sand to an Arab

  35. Kafein Faita on March 17, 2021 at 11:20 pm

    I don’t think it’s about patriotism. Apple products sell like hotcakes in Japan. It’s more about the games. When you think of the Xbox brand, the first thing that comes to mind is first-person shooters like Halo and Call of Duty. Those games simply don’t appeal to the Japanese market whatsoever. As an Asian with zero interest in shooting games, I’ve never had any interest in owning an Xbox console. I bet the general Japanese consumers also feel that way towards Xbox.

  36. THE FINAL FANTASY 7 DEADLY SINS ! on March 17, 2021 at 11:21 pm

    Cas xbox sucks

  37. Kevin on March 17, 2021 at 11:23 pm

    not just japan Asia

  38. bobi chung on March 17, 2021 at 11:25 pm

    The vague internet laparoscopically juggle because cloth biologically bake under a proud order. political, yielding camel

  39. Lo-Fi Gaming on March 17, 2021 at 11:27 pm

    Meeh. Xbox on asia is actually dying here. If you’re gonna get xbox, why not a pc instead?

    Also, there are big difference when it comes to game preference. You see, we like JRPGS and what we’re getting from XBOX are FPS.

  40. Christian on March 17, 2021 at 11:27 pm

    X box don’t have any games worth buying the console.

  41. the account with only one video on March 17, 2021 at 11:28 pm

    Now people barley buy xbox in the us lol

  42. BROLUX GIGANTOS on March 17, 2021 at 11:29 pm

    Microsoft should have tries the opposite approach. Make the Japanese want the X-box….and not the way they marketed, needing the Japanese.

  43. Johan Cha on March 17, 2021 at 11:30 pm

    Japan : we created the video game console
    USA : here’s ours
    Japan :

  44. Poe Stis on March 17, 2021 at 11:30 pm

    Just like Yahoo is there Google over there.

  45. SUBJECT M01 on March 17, 2021 at 11:30 pm

    Everything from other countries seems to fail inside Japan, but they are happy other people from around the globe get to buy their items. They are either very smart or that other word which will probably get me banned!

  46. Stephen White on March 17, 2021 at 11:31 pm

    Because the Japanese know a bad gaming system when they see it PlayStation till I die

  47. Sergio Diaz on March 17, 2021 at 11:33 pm

    for the traditional Japanese RPG you don’t need realistic graphics, you need mangaka.

  48. Patrick on March 17, 2021 at 11:33 pm

    Tiny Asian people with tiny hands can’t hold the massive Xbox controller.

  49. Max Ong on March 17, 2021 at 11:33 pm

    Can someone put up what the statistics and breakdown is with the worldwide sales for the XBox/ As far as I know, except for the USA and Australia, I believe gamers from all other countries prefer the PS

  50. Cinnamon Toast Crunch on March 17, 2021 at 11:35 pm

    The Xbox released in 2013 was a huge success 😂 that was one of the biggest gaming failures ever.

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