It's awful! Terrible, Japan's gaming industry is collapsing, the Playstation 4 is struggling and the 3DS nor Vita are pushing amazing numbers anymore. The developers have only themselves to blame, fragmenting it by supporting only one or two consoles and then being unable to get to grips with HD development and trying to make Westernized games which was never the answer. There's a lot of points to be made but perhaps it's best for another thread.
SEGA were fine between 2008 - 2012, the amount of games released coupled with what they were releasing was great, I'd say 2012 was infact the best third party year they ever had in terms of game quality.
The problem is this is the trend in Japanese gaming;
Coupled this with two major new IPs for SEGA opening less than 20,000 and Ryu Ga Gotoku: Ishin struggling to meet its target I must face the reality in regards to the future of the Japanese video game market.
SEGA will survive in thanks to their smart acquisitions of popular Western IPs and Sonic the Hedgehog but I am wary in regards to heavy weights like Konami and Capcom. Dark times ahead for Japanese video game companies, I am hoping the indie revolutionary might help Japan out but I am still unsure if it can do anything at all...
Interesting graph there Aki!
I believe there are a few problems regarding Japan's struggling market, and I do believe it's to do with their economy, the Yen re-evaluation, the inflated prices of products in Japan in addition to the Ageing Population, the managerial structure in Japan (where the Senior positions rarely retire for their younger peers to step up), the reluctance to adapt for the Global market, in addition to things like work overload by males, the lack of reproducing between adults and the rise of a culture where socialising with your work colleagues rather than neighbours or other social activity friends.
Some of that may or may not contribute to the lowered profits of Japanese games, but when you have the likes of even Nintendo failing to even up-start their home console in Japan, I do believe that the gap in the population is a very big and worrying problem, not just for Gaming, but for Japanese centric hobbies, media and even the Japanese people are indeed in danger of becoming a less populated race.
I don't mean to sound harsh in any of these criticisms, I genuinely believe the solutions to their economy, population and perhaps the immigration problems can be solved with actions from the Government (god forbid me saying that, as I am very anti-Government at the moment).
SEGA will indeed survive moreso than the likes of Capcom and Konami, but they can't rely on their western studios alone. The profits from them are indeed high, but I am guessing that (I am likely wrong) sales in their home territory is what SEGA needs to stay afloat.
Overall, I am not too bothered by SEGA's future. I am confident in saying that they'll weather the storm, but I honestly think almost all Japanese Development Studios (and publishers) need to invest in new blood. Recruiting students from college/university is just what they all need. Looking at some of SEGA's own well known producers, the youngest ones are in their mid 40s, whereas their oldest producers are getting into their 60s.
I admire Japan's work ethic and dedication, especially in their latter years, but I do believe they need to know when it's time to retire and have faith in their younger staff.
This is only my hypothesis and not based on any facts.