It seems that there are many opportunities to enter the Japanese mobile game market, but in fact the threshold is much higher than what appears on the surface. It is far higher than imagined and higher than what is seen on the surface.
Revenue pattern of the Japanese market
According to the Japanese mobile game revenue list presented in May 2017, eight of the ten games with high revenue are produced and distributed entirely by Japanese companies. There are two other models, although overseas companies are involved in the distribution, but the core part of their research and development is still in the hands of Japanese companies. Such an income structure clearly shows that a large proportion of profits and dominant power in the market are firmly controlled by local companies.
As far as specific products are concerned, games such as "Idol Fantasy Festival" and "The King of Fighters 98 Ultimate Battle OL" can steadily occupy a place in the top sales list in Japan for a long time. What is behind this is in-depth localization operations and continuous content updates. In May 2017 alone, the revenue of "Idol Dream Festival" exceeded US$6 million in just one month, which fully demonstrates the strong and sustained profitability of successfully localized products.
The monopoly reality of the best-selling list
If you look at the best-selling list of the Japanese App Store, you will find that the games that have been at the top for a long time are almost all products developed by local Japanese companies. After years of accumulation, these games have stable player communities and mature consumption patterns, which have formed extremely strong barriers to competition.
This monopoly is not only reflected in the rankings, but also penetrates deeper into the consumption habits of players. In Japan, players have unique requirements for game quality, cultural fit, and service. It is precisely because of this situation that it is extremely difficult for new overseas products to have an impact on these already stable head products in a short period of time. The solidification of the list reflects the maturity of the market and the direct reflection of fierce competition.
Access conditions for overseas products
For overseas games, the Japanese market is indeed more open than in the past. However, this openness is not without conditions. According to historical data, none of the successful overseas games on this list is deeply and closely tied to the various resources of local Japanese companies. For example, on the revenue list in August 2014, there were five mobile games related to China that entered the top ten. However, each of them cannot be separated from the participation of Japanese companies in the research and development or distribution stages.
A recent example is "Fate/Grand Order", which is distributed and operated by local companies in the Japanese market, but is represented by bilibili in China. This reveals a key pattern: if overseas products want to succeed in Japan, they often have to hand over distribution rights and even part of the R&D adaptation work to partners who are familiar with the local market.
The key role of localization cooperation
The successful cases all demonstrate the importance of localized cooperation. The "Idol Dream Festival" launched by Le Elements has gained a firm foothold in the Japanese market. Its early publicity and promotion activities in Kyoto played a decisive role. Such in-depth localization is not limited to language translation, but also covers the comprehensive integration of marketing, channel scope and community operations.
For Chinese companies, building close cooperative relationships with local publishers, channels and media in Japan is the key to whether their products can successfully enter the market. If you enter the market alone, you will face cultural barriers and channel barriers that are often difficult to overcome in the past.
Breakthrough opportunities in market segments
Even if the overall market has a strong monopoly, there are still opportunities in certain segments. For example, games developed for Japanese female gamers have achieved some results in recent years. These products often have targeted adjustments in art style, plot design, and social systems to meet the needs of specific users.
This differentiated strategy is a feasible breakthrough. Instead of competing head-on with local giants within the mainstream category, it is better to deeply study a certain player group that has not been fully satisfied, and then open up market space with the help of precise product design and operation.
The necessary mentality for long-term hard work
Never enter the Japanese market with a speculative mentality in order to make quick profits. Judging from past experience, even if a certain product rushes to the top of the list in a short period of time, if it lacks subsequent continuous localization operations and content updates, it will soon be forgotten by the entire market. Real success requires investing a long time and working steadily and step by step.
For those manufacturers who are interested in developing overseas, the first goal should be to "take root" and build a stable user base and brand recognition. Even if the scale is not very large at the beginning, this kind of steady accumulation is more important than pursuing explosive rankings, and can also lay a solid foundation for more products to enter the market in the future.
Regarding the expansion of Chinese mobile games to Japan, do you think that we should give priority to cooperation with local giants, or should we insist on operating independently and cultivate our own brand?
