230°

Microsoft Targets Europe After Failing to Woo Gamers in Japan

"Europe is our priority focus right now," said Aaron Greenberg, Microsoft's group product manager for Xbox.

After failing to capture market shares in Japan from Sony and Nintendo with a one-year head start, Microsoft may be running out of ideas to woo gamers in Japan and will target video gamers in Europe as the priority. The European gaming market was worth $7.8 billion in 2006; Japan's was $5.9 billion.

"It's difficult to see Microsoft capturing a significant share in Japan; after two years on the market, Xbox's position in the country is such that it makes you wonder whether further efforts are even worth it," said Hiroshi Kamide, a Tokyo-based games analyst at KBC Securities Japan. Kamide also said competition in the U.S. and European markets will make Japan a lower priority for Microsoft.

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bloomberg.com
WilliamRLBaker6065d ago

which is totally at odds with what they said and showed at TGS....hmmm
And last I checked...America was their priority market...

ktchong6065d ago

"Screw you guys. You ain't worth it. Good bye!"

stonedog6065d ago (Edited 6065d ago )

I think that all the developed markets are important to M$. However the US has the largest economy in the world and Japan the second. Clearly M$ wanted to take the fight to Sony home territory. It was a tall order to expect to succeed in this market as the Japanese are resistant to buying non Japanese products b/c they are not Japanese. The Japanese believe fervently in the quality of their product and the poor quality of non-Japanese products (I base this on personal experience). The PS3 is doing abysmally in Japan right now (although it is doing better than the 360) presently the Wii is uber dominant there. I read an article that the Japanese like to game online but prefer to do so for free. I note that Japanese game makers are looking to foreign markets b/c there is limited growth in the home market. Logic would state that for a greater install base M$ should have been a bit more focussed on the Euro market b/c to some degree it represented more low hanging fruit to be harvested rather than the difficult to reach fruit of the Japanese market.

nasim6065d ago

although HALO 3 would be released next week it would only sell among the existing xboxers.

No one in EU is willing to buy a defective console like x360 and over 30% x360s have been traded in for either wii/ps3.

HMV---UK's biggest retailer accounting for 40% of sales
http://www.hmv.co.uk/hmvweb...

ps3 at no 7 x60 non existent

AMAZON UK
http://www.amazon.co.uk/gp/...

ps3 at no 13 ...x360 not in top 35

jaja14346065d ago

@ stonedog
Its off topic but I have to say this. The U.S. does not have the largest economy in the world. Point of fact we are something like 17, if I remember correctly. Though if you want an easier way to look at it, measure the value of the US dollar vs any other form of currency. Hell Canada's looney is now equal to our dollar. A damm looney!!!

Last China is the world's largest...and its still growing.

+ Show (1) more replyLast reply 6065d ago
BloodySinner6065d ago (Edited 6065d ago )

Smart move, Microsoft. The Japanese don't like your system for obvious reasons? No problem. Just make the Xbox brand known in Japan so the Japanese companies can make software for your console while tagerting Europe and North America. Took them a while figure that one out.

Captain Tuttle6065d ago

But you said it better than I could have. Good post and you're right on.

Have a bubble.

ktchong6065d ago (Edited 6065d ago )

.

Relatively speaking, European values are much, much closer to American than Japanese to American. The types of games Europeans make, play and prefer are also much closer to the types of games American make, play and prefer: they are all "Western" games. Think X-Com (UK), the Longest Journey (Norway), Gothic (Germany). They are all European games that were way more popular in the US than in Japan.

It makes sense for Microsoft to go after the European markets first before Japanese, and Microsoft can play a role in porting titles between the two continents. European game makers will get to expand into American markets, and American gamers will get bigger selections of Western titles that appeal to American taste much better (over Japanese titles.) Both European and American games markets will be happier. That's killing two birds with one stone.

Personally, I would rather play European games over Japanese ones... European games and stories are more coherent and make more sense to me.

fllysurfer6065d ago

It´s simply just wrong to evaluate the European tendencies all the same way. You simply can´t do it. While culturally and upstanding values wise it´s easier to identify US and Japanese Citizens in the same way you can´t do the same for the several Euro countries... Period.

But it´s been said before, if there´s ground to decide the so called Console Wars (sales wise the deciding territory) will be most likely Europe.

If we consider next-Gen being just 360 and PS3 (which is correct to assume Wii is not per se). I would probably say that:

- US will be 360
- Japan will be PS3
- Europe will hover between the two until next next Gen comes around

However there´s a odd unbalanced there which was for sure not unintentional. By the current scheme of things... the next MS machine will be launching way sooner than the next Sony console.

3 years tops would be my guess and that sort of makes it difficult to pinpoint "winners" or "lossers".

Just my 2 bits...

Give us good games...we´ll be happy regardless of the rest.

ktchong6065d ago (Edited 6065d ago )

Japan will not be PS3... it will be Wii.

Why just next gen?

If you look at 360, PS3 *and* Wii in the US, 360 actually still have a bigger install base than Wii. Let's consider all new gen consoles.

In the US, 360 > Wii > PS3

In Japan, Wii > PS3 > 360

Wolfmoonstrike6065d ago (Edited 6065d ago )

If you actully read his comment he says and I quote "If we consider next-Gen being just 360 and PS3 (which is correct to assume Wii is not per se)." He is saying if you count only between the ps3 and 360 japan is ps3 america is 360 and europe is both

Edit: I don't know man I honestly think It'll be the Wii 1st in all places I mean that sucker's still sold out that and hardcore gamers are a minority compared to causul gamers wii= casual family fun(bigger market) 360,ps3= hardcore (smaller market) the wii will dominate and its too early to see who will win overall all this is now are guesses

Silvia0076065d ago

land a deal with square enix.

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90°

7 Iconic Games That Put The PS1 On The Map

The first PlayStation is home to an array of iconic video games that went on to define the sheer significance of this console.

SimpleSlave1d 19h ago

I think from a historical perspective I would change Spyro for Grand Turismo. It's the franchise that made the PS1 look like an absolute unit. Other than that, I can't argue with the rest when it comes to games that defined the PS1.

And to be honest, there should be space for Tekken 3, Wipepout and Tony Hawk's Pro Skater in order to round out the PS1 identity as the machine to own at the time.

With Tomb Raider 2, Silent Hill, Symphony of the Night, Tenchu, and Soul Reaver as backup contenders.

60°

Pacific Rim Pinball comes to Pinball FX

This could be fun as they make great tables. Go big or go extinct. Prime your senses for a neural handshake and step into the cockpit of a Jaeger. It is on you to cancel the apocalypse when Pacific Rim Pinball comes to Pinball FX on May 16.

290°

Microsoft’s Surface and Xbox hardware revenues take a big hit in Q3

Microsoft just posted the third quarter of its 2024 fiscal financial results. The software maker made $61.9 billion in revenue and a net income of $21.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 20 percent.

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theverge.com
darthv724d ago

Xbox content + services up 62% while hardware down 31%... seems about right with the way they tout you don't need the hardware to play. People can play on their phones or smart tv or other means. I don't hardly play on my consoles directly since getting devices like the logitech g-cloud and ps portal. Which is to also say I have been playing more digital than physical because of these devices.

solideagle3d ago

you should apply in MS PR team buddy, I think you will do a great job in my humble opinion :)

Sonic18813d ago

I thought darthv72 and Obscure_Observer already work for Microsoft 🤔

dveio3d ago

MS: "Xbox services and content without AB up 1%, with AB up 62%. Hardware down 31%. In total a loss of 350 mill."

darthv72: "Seems about right."

MS: "Excuse m ..."

darthv72: "I don't hardly play on my consoles directly."

MS:

Lightning773d ago

What he said was facts. How he plays games is no concern of you. Don't get too mad about it.

Cacabunga3d ago

I can tell people like you are an absolute minority..

If service is up means their fans and fanboys accepted this model and subscribed to it. The near future you will see a big decline because the service is saturated.

darthv723d ago

to you it may seem like the minority... but your bubble is shrinking because more and more are following suit. convenience is a hell of a drug and its also why physical sales only amount to 30% of overall game sales. times are changing, you either get with them or you get left behind.

neutralgamer19922d ago

Darth

30% physical sales: yet Phil and xbox division are in a rush go give up on that 30%. they don't have any right to give up any piece of the pie since the control such a little of the pie to begin with

also, the market is clearly speaking that the model Xbox is pushing isn't working right now the keyword being right now. you are right about freedom to play anywhere so i hope they put their games on steam

shinoff21833d ago

But that's been ms for years. When things aren't going their way they try to change the way things are said. For instance console sales are down, they stop telling how many sold instead telling us how many hours spent in halo or headshots. So it makes sense console sales down just say people are playing on more devices then previous. What they won't say is how many xbox players jumped ship to ps5.

Cacabunga3d ago

Hardware sales are so bad that Sony and Nintendo are blowing the sales off the water with their hardware.

If Xbox are losers, others aren’t..
Xbox already tried everything with Xbox live then subscriptions went down so much that they had to find something else. Their fans subscribed then reached saturation rather quickly.

Hardware and exclusive games is where it’s at! Keep gamers excited, announce decent software and people will support you

itsmebryan3d ago

@shin
Well keep it simple Sony 's operating income is down 26% and Microsoft's is up 32%. No MS spin there, just facts. 😉
Cheers

S2Killinit3d ago

MS is after diminishing consoles as a medium. They want to destroy this market because they couldnt win. MS’s vision is to dissolve console gaming.

romulus233d ago

Odd that a company that touts you dont need the hardware to play is already touting another console in the works.

darthv723d ago

They are not reliant on the HW but still want to maintain a presence (no matter how small) is a good thing. It shows commitment to the craft. It reminds me of SNK and how they made games for their own hardware (Neo Geo) while also making them for others because they knew there was a market to do so. They knew they would sell more to others but also sell to their own niche fan base.

TheEroica3d ago (Edited 3d ago )

Perfectly reasonable post down voted by insecure corporation friendly folk.... But not gamers. Real gamer want accessibility and ease of acquisition for all.... Company shills are the only ones still telling us that hardware locking people from games is good for us.

Chevalier2d ago

@Darth

You should stop parroting metrics like an idiot without context.

"Xbox content and services revenue grew 62% in Q3 from a year earlier, “driven by 61 points of net impact” from the purchase of the third-party video game giant, Microsoft said."

61 of the 62% was from their merger so net increase is ONLY 1%

https://www.mesaonline.org/...

itsmebryan2d ago

@chevalier

It looks like made a great purchase. Much better then Sony buying Bungie. 😉
Cheers

+ Show (4) more repliesLast reply 2d ago
purple1013d ago

Xbox hardware revenue tanks to lowest point of Xbox Series generation

Profchaos3d ago

I'm not surprised surface is struggling they aren't relevant anymore

DOMination-3d ago

In the last two years they've started exiting the consumer market altogether. All of the newest Surface products are business models only. They can't seem to work out what they want to do with it.

XBManiac3d ago

Too expensive hardware when others offer the same or more for less? Good work, Green Team.

SimpleDad3d ago (Edited 3d ago )

"Despite some early successes for Xbox games on rival platforms, Xbox hardware is down by a massive 31 percent this quarter."
"Without Activision Blizzard, Microsoft’s overall gaming revenue would have actually declined this quarter."
"Xbox content and services would have only been up a single percent without Activision Blizzard..."
"It looks like next quarter is going to be a similar story for gaming at Microsoft, too."

That is crazy... so A/B/K is carrying the whole Xbox gaming.
Oh and Microsoft will be fine. Windows, Office and Cloud are growing with each pc purchase.

purple1013d ago

Activision: "we gonna need a bigger rucksack/backpack please"

Microsoft: "why's that"

Activision: "to carry yo' weak ass'

Profchaos3d ago (Edited 3d ago )

Top brass have also wanted to start seeing returns on the 100 billion they have put into various Xbox related moves so seeing more multiplatform games is highly likely especially from abk

It's basically saying that PlayStation is the reason Xbox is afloat right now thinks to Ps5 versions of COD

Kornholic3d ago

So basically PS and PC gamers' money is keeping Xbox on life support.

MrDead3d ago

The only growth MS will get out of the console industry is if it supports it's rivals platforms. Xbox is a pointless machine now. I can see them on a big push for live next, and they won't give up on trying to buy Steam.

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