The Japanese game development industry is facing numerous challenges due to rising costs and a declining mobile game market.
The increasing expenses associated with developing high-quality games for the latest consoles, coupled with rising labor costs, are putting financial pressure on developers.
Additionally, the preferences of gamers are rapidly evolving, which increases the risk of financial losses for developers.
The installed base of the 9th generation consoles is lower than previous generations, limiting the potential for game shipments.
However, companies with a strong presence in the PC gaming sector may be less affected by this trend as the PC market continues to grow.
The mobile gaming sector in Japan has seen a decline, with projections indicating that this trend will continue.
Foreign developers, particularly from China, are entering the Japanese market with compelling game titles, intensifying competition for traditional Japanese developers.
To thrive in this changing gaming environment, developers must adapt to rising costs, a shrinking market, and increased competition while maintaining a commitment to quality and engagement.