Microsoft: Ads, Xbox Live crucial in Japan

  • By Walt Wyman, GameSpot
  • Posted Aug 9, 2006 2:06 pm PT

Japanese-centric marketing approach, Xbox Live are keys to Xbox 360 success in Japan, says Microsoft Japan chief Takashi Sensui.

While the Xbox 360 has seen healthy sales in the Western world, it has scarcely 1 percent of the Japanese game market. The man in charge of changing that is Takashi Sensui, general manager of the Xbox division in Japan. Today, ITmedia published an interview with Sensui, who is working to get more Xboxes into Japanese living rooms with a better lineup, better marketing, and better Xbox Live support.

Sensui says Microsoft Japan has fundamentally revamped the Xbox 360's advertising campaign--dubbed "do! do! do!" Shiyo ze!--by promising 80 new games by year's end and hiring local celebrities. "Japanese pop band Tokio provided the single 'do! do! do!' that gave this campaign its name," he said. "Our use of Tokio has made a good impression. ... They have been very effective in that they have shrunk the distance between the Xbox 360 brand and the users."

In addition to aggressive advertising, Sensui stated that his division's strategy for Japan has two points. "As a gaming console, the Xbox 360 needs a large [software] lineup; it also needs to give users a sense of security regarding the future [of the console]. ... [B]readth of genres, famous titles, and new, next-generation games are all necessary. ... We must convey to the users the value of the Xbox Live online services and HD-DVD player."

Speaking of the HD-DVD add-on, Sensui called it an "unknown quantity" because "there are various factors that we cannot control directly," such as whether HD-DVD will catch on with the public. But Microsoft's decision to offer the add-on was not intended as a gauntlet at the feet of the PlayStation 3's Blu-ray, he said.

"We are doing nothing more than offering next-generation DVD as an option," Sensui said. "Many users won't need it. I don't think the outcome of the competition between next-generation DVD formats will necessarily affect the competition between next-generation game consoles."

He dismisses Microsoft's other competitor, Nintendo, whose GameCube console beat the Xbox for second place in Japanese console sales. "The Wii clearly reflects Nintendo's vision, and I think this hardware will fulfill certain needs," he said. But the Xbox 360 and PlayStation 3, he said, will fulfill different needs--particularly with regard to price point. "I think the Xbox 360 is the best value for the money," he said. "Even so, we need to make it even more attractive. However, we are not considering a price drop at this point."

Regarding the question of how to turn the 360 into a hit in Japan, Sensui sees two roads to success. "One is to have hit titles, like Blue Dragon. If the software takes off, there's no doubt the hardware will become popular. The Nintendo DS, which got traction from its software, is the simplest example of this pattern. However, I think the Xbox Live community has the potential to create an even bigger hit."

Critics have called Microsoft's global launch of the Xbox 360 last year jumping the gun, but being early to the party has its advantages, Sensui said. "The third-party developers had many experiences along the way, and resolved the problems inherent to next-generation games one at a time; because of this, we now have a quality line-up. ... I don't think we were too early at all."

99 Comments

  • Coby7

    Posted Aug 22, 2006 11:23 am PT

    Japan is the world's second largest economy right behind the U.S., so to say that MSFT should pull out of that market would be a silly business decision. Regardless of their stature in the gaming world, their sheer size matters a lot.

    More success in Japan would beget more support and development, which would beget better games for all. And indirectly, PS3 and Nintendo gamers would benefit from the increased competition as they have to up the ante all around.

  • Tamashii-sosaku

    Posted Aug 21, 2006 8:01 pm PT

    The last 360 ad I saw here in Japan was a bunch of guys being chased around by a mosquito in Spain. Coldn't even tell it was a 360 ad untill the logo popped up at the end. Totally random.

    Microsoft might not be able to win over Japan but they have a chance to atleast improve their sales. So far most of the games that would appeal to Japanese gamers have been very sub-par or merely average. Enchant Arms, N3 etc. Games like Blue Dragon and erm thingy Oddessy might have been able to stair up alot of interest but since they're probably not coming out untill after the PS3 and Wii's launch it's pretty much pointless now.

    As other have said Xbox Live is a strong point of the 360 but Japanese live is very poor. There aren't nearly as many demo's or trailers and alot of what there are aren't even translated for Japanese users. Imagine getting all your marketplace content in Japanese, how much would that suck?

    Short of a miracle Microsoft has no chance of winning this generation in Japan. Square announcing that they'd release games for every single next gen platform EXCEPT for the 360 is another big blow. Microsoft can't win but they atleast have the chance to win over some more people and hopefully set themselves up for a more successfull Japanese domination plan next time round.

  • Formula_50

    Posted Aug 21, 2006 11:50 am PT

    M$ should just pull out and ship those consoles to the West.

  • JediMasterSheed

    Posted Aug 17, 2006 9:56 pm PT

    The 360 will never prosper in Japan, its as simple as that. There is no support for online in Japan, 360's greatest strength. Plus, there are no japanese oriented games (aside from a few like "n3").

  • DeathgiverX

    Posted Aug 17, 2006 4:27 pm PT

    I firmly believe that Microsoft will improve this generation. They are making far better efforts this time to grab the attention of Japanese gamers. As soon as they pick up a more steady stream of Japanese developer titles, they are going to beat Sony in Japan. Now Nintendo, that is a toss up, even I will admit that I want a Wii even though I despised NIntendo last generation, the price and Red Steel are just too good to deny. What Microsoft really needs to do now is strengthen their grip on the US market before Halo 3 comes out which is when they will deliver the KO to Sony and keep Nintendo controlled. And for the record, Japanese people do not hate foreign products it is just that they feel a sense of patriotism towards their domestic companies (something the Sony and Nintendo fanboys lack) which causes them to ignore Microsoft.

  • Kwzy

    Posted Aug 16, 2006 1:17 pm PT

    One single game like Blue Dragon isn't enough to sell many 360 machines!! Microsoft will have to show many good games to sell it's console in japan!! In my opinion, Microsoft will never be able to defeat Sony in Japan.
    And for that reason, Iam going with Sony

  • The_Weekend

    Posted Aug 12, 2006 9:32 pm PT

    There is a need for our dear MS to leave the advertising bit to their counterparts in Japan. Only the Japs know what can be done to appeal to their people ... so the US side can concentrate on accquiring good games for everyone. They might stand a chance if done correctly, the Japs can go wild suddenly for something advertised correctly ~ even if it might not be worth it!

  • soulknight63133

    Posted Aug 10, 2006 4:29 pm PT

    Maquis_UK if NOBODY wants X360 outside of the U.S. then why are their sells reports from Australia, Europe, and Canada. Why am I on "live" playing with people who live in other countries. The more you talk the more ignorant you sound. If you're going to make bold statements like that make sure you can back it up, I know I can prove that there are X360 sales OUTSIDE of the U.S.

  • leapfrog91

    Posted Aug 10, 2006 1:53 pm PT

    People talking about thinking outside the box and all the things MS has done wrong in Japan are missing the point: MS is not a Japanese company. Therefore, no matter what they do, only time can push the Xbox to a truly competetive level in Japan. Ads, software, etc. can help, but noone should be surprised when Xbox hits 3rd again in Japan - this time around, at least.

    Once MS finds itself in a position of power in Europe and NA, they can leverage that rep and dev support to push forward in the land of the rising sun .

  • gaming_otaku

    Posted Aug 10, 2006 12:29 pm PT

    "To those of you who thinks that Japan is absolutely key to winning the 'worldwide' (I emphasise this) console war, then you're absolutely wrong!"

    Japan may be a small market, but evryone knows that. The importance that Japan has for the 360 is not regarding its market size, its regarding the fact that Sony is the king of EVERY market. If the Xbox doesn't even have a competitive spot in Japan it will never be able to beat the PlayStation. That's why Japan is so important.

  • ObiKKa

    Posted Aug 10, 2006 12:11 pm PT

    To those of you who thinks that Japan is absolutely key to winning the 'worldwide' (I emphasise this) console war, then you're absolutely wrong! The PS2, in one report (yes, including people buying another unit coz their prior one broke down!) sold about 20 million units in Japan, 40 millions in NA, & 37 millions in Europe (Australia also has a good share between the Xbox & PS2). See, that means that almost 4/5 of the PS2s were sold outside of Japan!

    OK, of course, I know that many overseas (me too) do like Japanese RPGs. But let's face it, there are SO MANY Western developers making games (which are of course not Japanese stylised) that will help to sell just about any consoles to the customers outside of Japan, which is larger than the Japanese fanbase itself! Just wait till the end of this year & next year to see...

  • enoslives7

    Posted Aug 10, 2006 11:59 am PT

    microsoft should just give up on Japan......they will just continue to lose money

  • mpeg3s

    Posted Aug 10, 2006 11:39 am PT

    In Japan MS thinks they can simply hire a Japan guy that will show Japan that XBOX is their system. It doesn't work that way!

    MS needs to think OUTSIDE of the BOX. Anything normal for the 360 after a RUSHED launch without Japan software will fail period.

    They would have done BETTER by hiring an American executive in Japan that would have thought outside the box instead of inside. I'm sure NO one wants to sign up for this job, but I would.

    Software in Japan is not going to happen without sales. Hype in Japan with a poor rep gets you NO where.

    MS either had to go on a buying spree or there needs to be some new shady practices. I'm won't get into this. Because MS ain't paying me!

    Mpeg3s

  • williamwu1985

    Posted Aug 10, 2006 11:24 am PT

    Xbox360 in japan is just what i thought a year ago, dont even know what those american thinking about. action and shooting game just not a style for me and other asian. even i live in NA, i still support sony cause it has japanese style game. and ps3 seem can play import game without changing NA version of ps3. i am surely get ps3 even it doesnt have blue ray drive and still 600 dollars, i believe that's also what those japanese are thinking about.

  • spidey008

    Posted Aug 10, 2006 10:44 am PT

    Japan will choose a console that has games that appeals to them. If M$ comes out with good games that the Japanese market is interested in, they will seel Xbox 360's.

  • phSychO_AtDawn

    Posted Aug 10, 2006 9:12 am PT

    In Japan it's all about respect,and Obviously there's not much respect for Xbox there,in other words,it has'nt caught their attention.And I guess this is a good move for Microsoft to push Advertising for the Xbox 360 to a new level.

  • terrabreak13

    Posted Aug 10, 2006 8:56 am PT

    The 360 may not beat any of it's competitors in Japan but Sakaguchi is going to move a lot of consoles. Everyone seems to have their theories on why MSFT is not doing well in Japan. Is it ethnocentrism? Or is it simple that the games available now are not appealing to them? Blue Dragon will be the answer to all these questions.

    This is the team that made Chrono Trigger, it is impossible for them to screw up Blue Dragon. I don't have to see anything about this game to know that it's going to be a great game. If this game fails then we can safely say Japanese are only loyal to their companies. If it does well then we can be sure it was always about the games. We will just have to wait and see.

  • LosDaddie

    Posted Aug 10, 2006 8:02 am PT

    The Xbox360 will be fine in Japan once Blue Dragon comes out.

  • Paul_TheGreat

    Posted Aug 10, 2006 7:17 am PT

    Xbox 360 is already dead in Japan.

  • mr_squibble

    Posted Aug 10, 2006 6:56 am PT

    RuneX212121
    MHDER,

    "I live in japan and its not as glorified as you think. Believe it or not thier is a huge product loyalty aspect here. However, that doesnt mean things are impossible. I have yet to meet someone here who had a dislike for the 360, rather, its always an indifferant response. Thier doesnt seem to be a hate for MS, just cautious gamers who are waiting to see whats the best for them. I really dont blame them either.

    Believe it or not, none of the people I have talked to here are really thinking all that much of the PS3 either, mainly due to the price as its 62700 yen just for the base model.($600) With no price set on the premium, but I have seen it available for preorder at a cost of around 85000yen($800) Rather, it seems most are interested in the Wii due to its cost effectiveness and quirky design.

    Basically, the market here in japan is ripe for sales regardless of console, MS is fighting an uphill battle as their is brand loyalty, however its not so powerful that they will buy crap over quality. MS just has to prove that it has the quality and commitment and if all this article says is true, then they should fare well over the course of the next year. "

    This is the most intelligent post on here. Thank you, RuneX212121. I can't believe Gamespot lets some of you get away with such blatantly stereotypical and racist comments about Japanese (and even English)people. You should be ashamed.

  • Dark_Link657

    Posted Aug 10, 2006 6:41 am PT

    "They're very strict and quality-control is much better" Are you kidding me? PSP and PS2 are both unreliable pieces of hardware. You can say that for NIntendo, but PSP has problems with its cheap screen and DRE with PS2

  • amirkalloe

    Posted Aug 10, 2006 6:14 am PT

    yeah, good job Xbox 360!

  • wenbin09

    Posted Aug 10, 2006 5:28 am PT

    i see MS not being able to overtake Sony in Japan.. no matter what circumstances...

  • Maquis_UK

    Posted Aug 10, 2006 5:09 am PT

    is this really a race issue? or is it all about Japanese gamers waiting for other consoles? why is that so unacceptable? nobody wants the 360 outside of the U.S. deal with it. and micro$haft ARE renowned for releasing buggy software (and the updates and patches barely cover the inherent problems) so why would anybody want ill-concieved hardware too? let's be real here MS has lost this round at least in Japan and they themselves insisted that failure in Japan = failure of 360. so let's see them stick to their principles for once. not likely.

  • soulknight63133

    Posted Aug 10, 2006 3:31 am PT

    Sorry, I disagree. You don't get to be as successful as MS by just selling shoddy product. If you don't believe me just try opening a store and try to sell bad product and see how successful you become. This is true in any business. As for the war boths sides did their fair share of killing. But that did not stop Sony or other Japanese companies from being accepted and successful here in the U.S. So don't use the war as an excuse unless you're saying Americans are more forgiving which may be true or no Japanese company would have been allowed to step foot on U.S. soil, now would they?

  • windowlicker22

    Posted Aug 10, 2006 2:43 am PT

    There's 2 reasons why Japanese don't buy Xbox's.

    1. They hate Americans generally...remember the second WW? Maybe a long time ago, but some actions (atomic bombs) are still fresh in memory. And US's current warpolitics don't improve the situation. Hatred against Americans is rising everywhere. So boycotting their products is the consequence.

    2. Microsoft has a reputation of rushing out unfinished products (windows) which is completely the opposite of the japanese traditions. If you've worked for a Japanese company you'll know this. They're very strict and quality-control is much better.

  • nickystixx

    Posted Aug 10, 2006 2:31 am PT

    xbox 360 cannot and will not be the system of choice in japan. its freakin impossible. xbox...stick to USA please.

  • soulknight63133

    Posted Aug 9, 2006 10:16 pm PT

    who's cares what MS does or any other company for that matter. we're gamers and if one of them puts out a product we like we buy it. their bottom line has no financial effect on any of us unless you have stock or work for them. no matter who "takes over" rest assure we won't be receiving any checks from them, so why are some of you acting like you have something at stake or some large investment you're gonna lose if your favored company don't rake in the sales? they are all big companies and won't be going anywhere any time soon. i hope you're just as passionate about things that really do matter in real life as you are about companies, systems, and video games.

  • troakun

    Posted Aug 9, 2006 10:10 pm PT

    I have to admit, you can't blame Microsoft for trying, Japan is their biggest weakness and they just want to conquer that weakness. I hope they do BTW because it is preety unjust, I mean even if the 360 was the greatest system ever made it still wouldn't sell in Japan for cultural reasons.

    I find MS's marketing strategy preety lopsided though. They say XB-Live is the key to success yet they are the only company charging for full-service. Kind of a lame strategy if you ask me. What I'd do is I'd pull a Famicon/NES deally and rename the xbox 360 something else in Japan. XB 360 is way too American sounding, I'm not even sure if it can be pronounced properly in Japanese.

    -UntoldDreams-
    "Xbox live... Yeah... let's unleash some angry racist swearing 15 year olds on the Japanese and see how they feel about that experience..."

    lol!

  • faridmon

    Posted Aug 9, 2006 10:04 pm PT

    why is that all hatred posts to japan? you american are just unacceptible, if japan don't buy a XBOX360, does it make them nooobs, *sigh* why are the american so racisst and the whole african gang is angry if anyone say something about them (no offence), the XBOX has no game that make them buy one, heck here in europe XBOX360 is doing very poor so why are you all say such a rasisst statements.
    here in Europe, FPS is selling crap, so XBOX360 is not just dead in japan but also half-dead in europe, and then something racicst to europe also.

  • DDPX

    Posted Aug 9, 2006 9:51 pm PT

    I thought Microsoft was supposed to employ some of the smartest people in the country? Wake up MS! The Xbox will NEVER take over Japan! Americans don't know how to think out of the box. They're too ethnocentric. They're also too arrogant. Look at how he dismisses Nintendo when the Wii is EXACTLY what Japanese gamers love! They are addictied to all that gimmick stuff that doesn't fly in the US. I guess MS can't understand why violence doesn't sell everywhere else. The best you can hope for is an east/west console split. PS3 will rule Japan, 360 can possibly rule North America.

  • Kfoss

    Posted Aug 9, 2006 9:22 pm PT

    LOLOL "gather round the map room everybody cause im gonna beat the living force out of you,!" the youg jedi said to the youngling, (youngling) much strength you do have, but turn to the dark side you shall,

    LOLOL YAYAYAYA i bet this will be fun..GTA teenage style! cant wait..and with british-ness too! its about time they had a good fighing game that shows there not just a bunch of tea drinking cumpet crunching...well you get the hint

  • soulknight63133

    Posted Aug 9, 2006 8:58 pm PT

    crck- true there is alot of racism experienced on "live". we can only hope humans as a whole can overcome their own stupity. we can't even find "common ground" on something as trivial as video games. always quick to disagree and argue instead of finding ways to agree and learn from different point of views.

  • JLCrogue

    Posted Aug 9, 2006 8:56 pm PT

    Hopefully the n00bs in Japan will finally realize how awesome the Xbox 360 is... maybe they'll finally stop playing crappy JRPGs, but that's just wishful thinking! lol

  • VegetaMaelstrom

    Posted Aug 9, 2006 8:56 pm PT

    So Microsoft finally realizes that it needs a better marketing approach to succeed in Japan. Up till now it looks like they were using the Japanese equivalent of the terrible ad agency that was supplying the dreadful dustball and squirrel commercials in North America for the PSP. These commercials don't make me want to buy a PSP but they do motivate me to change the channel with world record setting speed.

  • Shawnzee_102

    Posted Aug 9, 2006 8:39 pm PT

    MS has more JRPGs planned than any other next gen console, they just need some big name killer apps.

  • dm235

    Posted Aug 9, 2006 7:35 pm PT

    Unless M$ gets some Japanese developers on their side, I don't think the 360 is going to get anywhere.

    And the fact that the 360 is region locked doesn't help, as that means you cannot import anything from NA or Europe.

    Finally, I think most Japanese are waiting to see what Nintendo and Sony have to offer before making a decision. Heck, I'm doing the same thing...

  • Domobran-

    Posted Aug 9, 2006 7:09 pm PT

    I believe that Sony is trying to capitalise on the fact that alot of Japanese people are brand loyal as people here are recognising but i think that this might be Sony’s downfall. The way that Microsoft is fighting hard in Japan, makes me believe even more that Microsoft believes that Gamers in Japan may be hesitant to purchase the PS3 because of the ridicules price and that will be their chance to gain more market share.

  • nacho4511

    Posted Aug 9, 2006 6:56 pm PT

    microsoft would be very lucky to even get close to second place in sales in japan. Wii will dominate no doubt

  • mat2g

    Posted Aug 9, 2006 6:16 pm PT

    Good luck MS, your'e gonna need it.

  • RuneX212121

    Posted Aug 9, 2006 5:56 pm PT

    MHDER,

    I live in japan and its not as glorified as you think. Believe it or not thier is a huge product loyalty aspect here. However, that doesnt mean things are impossible. I have yet to meet someone here who had a dislike for the 360, rather, its always an indifferant response. Thier doesnt seem to be a hate for MS, just cautious gamers who are waiting to see whats the best for them. I really dont blame them either.

    Believe it or not, none of the people I have talked to here are really thinking all that much of the PS3 either, mainly due to the price as its 62700 yen just for the base model.($600) With no price set on the premium, but I have seen it available for preorder at a cost of around 85000yen($800) Rather, it seems most are interested in the Wii due to its cost effectiveness and quirky design.

    Basically, the market here in japan is ripe for sales regardless of console, MS is fighting an uphill battle as their is brand loyalty, however its not so powerful that they will buy crap over quality. MS just has to prove that it has the quality and commitment and if all this article says is true, then they should fare well over the course of the next year.

  • Squall_sebas

    Posted Aug 9, 2006 5:55 pm PT

    well microsoft is trying hard, we have to accept that but.... it's kinda impossible for them to win in Japan, we just have to wait a few months, I don't remember which one, but there was a week not long ago, when the xbox ( the first one not the 360) sold ehmmm 0 consoles,... every week there are like 1000-2000 360s sold in Japan but that's nothing compared to the number of DSs and PS2s that are sold each week.
    Wanna know how many consoles were sold in Japan last week?? Ceck this out and make your guesses

    1. DSL - 176,853
    2. PSP - 42,604
    3. PS2 - 26,451
    4. Xbox 360 - 2,246
    5. GBASP - 2,229
    6. GBM - 1,766
    7. DS - 1,530
    8. GC - 1,039
    9. Xbox - 11
    10. GBA - 9

  • tidusjeff

    Posted Aug 9, 2006 5:49 pm PT

    ''Digital-Devil
    Wish i could understand what that means...
    I think the Wii will outsale the Ps3 for alot of reasons, one is the price, and second is Nintendo has and always will be huge in Japan''

    The Wii will most likely outsell the PS3 for not only it's price but by how ignorant the consumer is to fall for the console. See the Wii is targetted to casual gamers as well as gamers who can't either stand playing modern games or hardcore titles that include a steep learning cerve yet deliver in gameplay. You've seen this in the past, Satarn, Dreamcast, Playstation, Playstation 2, which they had great titles yet the average joe doesn't know anything about or is afriad of playing. Secondly the Wii offers a controler that appeals to those types of gamers as well as games that appeal to the casual gamer, average gamer, or the type of western and european gamer who likes a type of game without a eastern influence or a eastern title that includes refferences or things that appeal to that type of demographic.

  • lgoldberg

    Posted Aug 9, 2006 5:42 pm PT

    Microsoft will never win Japan. Sony and Nintendo always have, and always will, own Japan. Wish they would tell you what "do! do! do!" Shiyo ze!" means.

  • peeweeshift

    Posted Aug 9, 2006 5:31 pm PT

    what!!! gamecube beat xbox ibn sales. well tahts japan and most of gc games are japan made

  • RaiKageRyu

    Posted Aug 9, 2006 5:24 pm PT

    nice try

  • Digital-Devil

    Posted Aug 9, 2006 5:23 pm PT

    'tidusjeff
    If Microsoft sells enough units to equel the sales of the Wii and possibly the PS3, then it's official that Microsoft has taken over the world in technogly."

    Wish i could understand what that means...
    I think the Wii will outsale the Ps3 for alot of reasons, one is the price, and second is Nintendo has and always will be huge in Japan

  • capthunt

    Posted Aug 9, 2006 5:23 pm PT

    Pff consoles

  • tidusjeff

    Posted Aug 9, 2006 5:17 pm PT

    If Microsoft sells enough units to equel the sales of the Wii and possibly the PS3, then it's official that Microsoft has taken over the world in technogly.

  • Oni

    Posted Aug 9, 2006 5:17 pm PT

    I wish Xbox luck in Japan. I give them alot of respect for trying. I guess I just like to root for the underdog. I think after the other systems are out people will see the Xbox is really a great system for the price with alot to offer.

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