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What is the Scope of the Gaming Business in Japan? Market and Insights

Game Development
Jul 09, 2025
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How to Start a Successful Gaming Business in Japan

The Japanese gaming market holds a lot of potential, and the scope of a business in this landscape is very high. The diverse market offers business owners or indie developers exceptional opportunities to scale. In terms of revenue and growth, Japan has third-largest economy in the world, which is another evidence of the country’s potential.  

Japan is undoubtedly the best country for investing in the gaming sector. It is highly unlikely that you are unaware of the gaming landscape in Japan and its influence on the masses. Moreover, Japanese culture also influences the gaming business.

Also, this small East-Asian Island competes with the giants of gaming industries like the US and China stamping its name on the list of the most vibrant gaming communities in the world. This cements the claim of having a significant scope of gaming in the country.

What are the Opportunities in Japan’s Gaming Sector?

We shall dig deeper on the gaming market in Japan and how it can benefit you. Even though companies like Sony, and Nintendo have their stronghold on the market, you too can build a good business from scratch and generate revenue in billions.

For example, if your game is optimized with anime-style combat, incorporates Japanese culture, and is an action RPG genre, it will most likely get all the attention in the country. Hence, starting a gaming business, with certain aspects kept in mind, can be a fruitful thing in Japan.

Market Size

The humongous gaming market in Japan is the deciding factor for starting a business in the country. The year 2020 saw Japanese gaming market churn 19 billion dollars in revenue, trailing China and the US. Japan is the third-largest gaming market in the world, surpassing South Korea and Germany.

Mobile games draw the biggest share of revenue in Japan. Since the gaming audience prefers mobile games over consoles and PCs, the revenue is also produced more from the smartphones. The working class in the country is always in a hurry, and the best way they could entertain themselves is by playing video games on smartphones. Therefore, a mobile game developed in the country has the potential to break the market.

  • The gaming market in Japan is enormous
  • It is the third largest country to distribute games to the world
  • Mobile comprise of the largest audience
  • Mobile games hold the maximum potential in the country

What Should You Know About the Gaming Market in Japan?

Gaming market in Japan

We mentioned previously in this blog that gaming platforms generate billions of dollars every year in the country. We also know that the market is heavily inclined towards mobile gaming. Consoles and PC games are tertiary mode of entertainment in the country. Applying cross-platform feature in your mobile games can drive a humongous revenue.

Big cities like Tokyo, Kyoto and Minato accommodate most of the gamers in the country. Since the inclination of the people is towards social features, in-game chats and co-op modes are something that should be a must in your game if you are entering the gaming market in the country. These features bring people closer to each other in fast-paced environment of the city.

  • Gaming market generate billions of dollars in revenue yearly
  • Mobile gaming is preferred by the masses over consoles and PCs
  • Cross-platform feature is bound to do well in the market
  • Tokyo, Kyoto, and Minato are the top three cities with most of the gamers
  • Social features should be a must in mobile games

Let’s discuss some of the key similarities found in the popular video games available in the gaming market in Japan.

Action-RPGs

The Japanese love action-role playing games. Studies show that people are more inclined towards Action-RPG genre of games, which provides a real-time combat system. Storytelling is also crucial, therefore, an intricate plot is also important. Fun fact – JRPGs or Japanese Role Playing Games is a distinct genre of gaming especially designed by and for the people of Japan.

  • Action-RPGs feature real time combat mechanics
  • The games also have a character story arc
  • JRPGs are special games corroborating Japanese culture in action-RPG genre

Also Read: What is an RPG Game? A Beginner’s Guide

Lean Towards Mobile Games

You should know the most obvious truth about the gaming market in Japan. We have stated multiple times that the Japanese prefer playing games on their smartphones. We also have discussed the reasons behind it. Some of the titles are more common compared to titles that are only developed for PCs or consoles like:

  • Fate/Grand Order
  • Monster Strike
  • Tokyo Revengers
  • Final Fantasy Brave Exvius
  • Pokemon Go 

Regulations and Laws

Regulatory laws are strict in Japan. Therefore, you must acknowledge the local laws and design your game based on the instructions. For example, A-rated games are restricted for younger audiences and you would need to exclude elements from your game to adhere to regulatory laws.

Related: Importance of sound design in games

How do Japanese Developers Incorporate Culture in Video Games?

Japanese value and appreciate cultural relevance in games. Their fondness for clubbing anime in the gameplay is reflected in the titles they endorse. For example, games like Genshin Impact, Sword Art Online and Naruto: Ultimate Ninja are some of the titles famous in the Japanese market. 

Games like Okami and The Legend of Zelda strike a chord with the Japanese people, and it boasts the revenue of the games as well. These games provide immersive gameplay mechanics and optimization that stand out from the crowd.

Game Characters and Aesthetics

The unique art form of the island reflects in their titles. Developers design characters in accordance with the world-famous art styles: Anime and Manga. Players tend to relate more to the creativity displayed in the game while designing characters for online games.

  • Relatability factor plays a big role in selecting a title
  • Japan’s traditional art form is reflected in their games.
  • Anime and Manga heavily influence characters in JRPG games.

Related: What is the difference b/w Raster and Vector Graphics

Based on Mythology and Traditional Themes

Traditional themes and Folklore have a great impact on the Japanese crowd. Titles often incorporate these themes in their gameplay mechanics. In Japan, rivers, mountains, and nature in general are very respected and placed alongside god. For example, the title Okami incorporates Kami, Japanese gods or natural phenomena, in its world.

Use of Gacha Mechanics

Use of Gacha Mechanics

Gachapon, a small toy vending machine, is very common in Japan. Game developers got inspired by Gachapon and started to amalgamate it in video games naming it as Gacha mechanics. Through Gacha mechanics you can collect characters, random rewards, and other things depending upon which game you are playing.

Related: Know Everything about Black Myth: Wukong

Which Platform Attracts the Most Audience? Mobile Games, Consoles, or PCs

The audience engaging in Mobile games easily dominates the console and PC players by miles. There are a number of reasons for over 50 million people engaging in mobile games, few of the reasons are mentioned below:

  • Mobile Games are Popular
  • Easily Accessible 
  • Huge Library of Games

The use of mobiles in Japan’s gaming scenario is highly prevalent, although world-famous gaming consoles like PlayStation and Nintendo Switch are developed in Japan. Players adopting consoles range between 20 to 30 million in the country followed by PC users ranging in 15 to 20 million.

PlatformPopularity LevelKey Audience DemographicsStrengthsWeaknesses
Mobile Games5/5Teens, adults, casual gamersHighly accessible, low entry barrier, on-the-go playLimited depth in some games, smaller screen
Console Games4/5Hardcore gamers, families, teensRich storytelling, exclusive titles, strong graphicsRequires hardware investment
PC Games3/5Hardcore & niche gamersCustomization, eSports, high performanceLess popular culturally, higher setup cost

Also Read: What are the Different Types of Gamers in the Gaming Community?

Games Preferred by Audience

There are many mobile games popular in Japan, however, certain games like Mahjong and Super Mario play a significant role in Japan.

Nintendo’s launch of Super Mario Bros in 1985 helped the company acquire a place in the gaming industry. It is recognized as Japan’s one of the oldest characters which is relevant to this date, and there are still millions of players who enjoy this game to this date.

This might lead you to a question: Why is Mobile Gaming Gaining so much popularity in Japan? And we have got you covered.

Can Marketing Take Your Game to Heights?

Yes, marketing is one of the ways through which you can take your game to heights. The very first step in marketing is building a community on the internet. Community interactions on Reddit, Quora, and Discord boosts the game’s visibility and is a crucial part of the marketing process of your game. Facebook can also be your go-to sites to build a strong community. 

Contacting regional game influencers who stream on YouTube is also a preferred way of the marketers. They can help in sharing the gameplay with their subscribers, eventually boosting the game’s engagement.

Organizing social media campaigns and e-sport competitions to bring in big players and make them compete for a better reach of the game.

More than Marketing, you need to analyze the gaming market of Japan to make your gaming business profitable. Here is the full analysis of How you can make your gaming business profitable in Japan.

Conclusion

We have learned that entering the online gaming business in Japan can be a great decision for entrepreneurs if they play their cards right. Being the third largest gaming community in the world, developing and marketing an online mobile game in Japan is fairly easy compared to other countries. 

BR Softech, a prominent game development company in Japan, can be a huge help with 13+ years of experience in the gaming industry. Our team not only helps you in game development but also strategizes a marketing plan for your game. Hence, you can stay ahead in the game by contacting us.

Contact us

FAQs (Frequently-asked Questions)

Why is Japan a better country for initiating a gaming business?

Being the 3rd-largest gaming market in the world, Japan offers multiple opportunities in the gaming domain. Hence, it is one of the best countries in the world to commence a gaming business. BR Softech can help you get better insights

How big is the gaming market in Japan?

The gaming market in Japan touches the mark of more than 20 billion dollars every year. With around 100 million players in the country, the gaming audience is very vast in Japan.

What genre of games are popular in Japan?

Players in Japan prefer action-RPG games, depicting anime-style graphics combined with rich storylines. Games like Dark Souls, Final Fantasy, and Genshin Impact are some of the major RPGs popular in Japan.

What platform is preferred in Japan?

Japanese prefer mobile games over every other platform, be it consoles or PCs. Japan boasts a total of around 50 million mobile game players, followed by approximately 25 million console players and 15 million PC users.

What are Gacha mechanics in online video games?

Gacha mechanics is a method of collecting rewards from games, which is inspired by Gachapon, a small toy-vending machine.

Nitin Garg

Nitin Garg is a seasoned tech entrepreneur and the visionary founder of BR Softech, a globally recognized leader in game development. With over 13 years of industry experience, he has been instrumental in transforming BR Softech into a powerhouse of innovation, offering cutting-edge solutions in Video Games, Blockchain Games, NFT Game Development, and card games like Poker, Rummy, and Teen Patti. Nitin’s deep expertise in emerging technologies, combined with a sharp business acumen, has helped position BR Softech as a trusted name in the international gaming arena. Under his leadership, BR Softech has built a global clientele of 3,000+ satisfied customers and scaled a dedicated in-house team of 180+ skilled professionals.

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