According to Square Enix in its annual financial report, the Japanese market is no longer enough to recoup the cost of developing games and make a profit, so it is increasingly necessary to turn to the international market.
Square Enix’s words, in fact, reflect a situation that has become quite obvious today – local markets are no longer enough for medium and large productions, which must necessarily appeal to a wider global context. SEGA itself made several references to the success of its Yakuza and Persona series outside of Japan in its latest economic report, a sign that major Japanese publishers are already looking beyond the domestic market.
But let’s read what exactly is written in the Square Enix document:
The challenge of sustainable growth in the video game industry is challenging for companies operating only in the Japanese market, given the aging audience. Therefore, it is very important for our business to release successful projects focused on a global market that offers a larger scale both in terms of the number of customers and in terms of sales.
In other words, the Japanese market is no longer sufficient to achieve a revenue level that would allow us to recoup our investment in development and make a profit, so we must base our manufacturing efforts on the assumption that we must succeed in the global market.”