Microsoft seeking acquisition of Japanese studios. "Japan market no longer important to Sony."

Bloomberg (thanks, VGC) reports that a number of studios based in Japan have been approached by Microsoft with a view to acquiring them. Though the studios asked not to be named - and would not be drawn on detailing how the discussions concluded - head of Xbox operations in Asia, Jeremy Hinton, said Microsoft was "always open to discussions with creators that are a good fit" but declined to comment if any acquisitions were due to be announced soon.

It's reported that one of the studios approached includes Koei Tecmo. President Hisashi Koinuma reportedly stated that he was willing to consider releasing more games on Xbox "if the U.S. company shows continued interest in Japan".

"The Xbox has a chance to make Japan its second-largest market after the U.S. if it takes the right steps for years to come," said Ace Research Institute analyst Hideki Yasuda, who is based in Tokyo. "Sony's attention is drifting away and fans have started to notice that.

"Microsoft won't be able to take Sony's position as No. 2 [after Nintendo] in Japan anytime soon, but at least it has started to make changes. A big tide always starts with a small change."

It seems Yasuda is not alone in believing Sony is focusing on PlayStation plans Stateside.

"It's analyst consensus that PlayStation no longer sees the Japan market as important," added Morningstar Research analyst, Kazunori Ito. "If you want to know their take on the Japanese market, you need to ask about it because otherwise, Sony wouldn't talk about it."

https://www.eurogamer.net/articles/2020-11-08-microsoft-is-seeking-small-to-big-acquisitions-of-japanese-development-studios

Should be interesting to see what happens. What Japanese developers should join Team Xbox, SW? I'm not crazy about the idea, but if it means keeping a developer alive and making great games, then I guess it's ok. The article says Sony is more focused on the US now. Not sure if that's really true. Your thoughts?

None. These acquisitions are not good for the industry, but the gaming media and fanboys obsession with "teh exclusives" are pushing hard for more games to be locked down. 🙄😑

Would rather have MS go talent hunting in Japan and build a studio there from ground up. But it makes sense for them to bring more studios to feed Gamepass and being that it serves both the console and PC I'm kinda fine with it.

Well I always welcome more Japanese games coming to the Xbox platform. Not really sure who I’d say that I would like to see them acquire though. Probably someone who doesn’t normally put their games on the platform already I guess. It does seem that Sony has been more focused on the U.S. market for the past little while lately.

Please don't let them buy any good studios, they've already killed off enough of them already.

Which Japanese studio have they killed off?

Not a new trend. Games are getting more and more expensive to make, thus requiring more sales to make money back. Catering to a single market, even a decently-sized one with reliable spending power, is not a good business strategy. Hence why pretty much every big Japanese publisher have been trying to make games that appeal to broader markets, particularly Europe and America.

As for Microsoft, the logic is the same but in reverse. I believe any Japanese developer they acquire will similarly be asked to produce games that appeal to both Japan and the West.

I think V is referring to Scalebound situation with Platinum Games is why he would say such a thing. But I'm for one willgive MS a chance how they will approach Japanese developers.

Just stay away from SEGA.

Sony moved its PlayStation headquarters from Tokyo to California a few years ago. In other words, Sony's PlayStation division has essentially become an American company. The home console market has been shrinking in Japan, so Sony no longer considers it an important market for the PlayStation brand.

MS haven't acquired any Japanese studios yet, AFAIK. But a few Western studios (most prominently Rare) were mismanaged under Microsoft.

Console gaming is dead in Japan. This is a fool’s errand from Microsoft.

@davillain-: They did release some amazing JRPGs during the X360 but lems just didn't cared at all. But with Gamepass they might be tempted to take similar risks. I would love to see Lost Odyssey 2 dropping on Gamepass anytime.

@Juub1990: But Japanese games do sell allover the world.

@Jag85: That does sound like what I’ve heard before if I’m not mistaken.

Lol. Xbox is better off purchasing some western devs than trying in Japan. Not about how much can they sell in Japan but most Japan AA games don't even sell very well on xbox globally. seems like a lose lose situation for both Xbox and Devs.

Xbox do have a friendly relationship with Mistwalker though. Just formalize the ties.

@Pedro: I never said they killed off any Japanese studios, re-read my post and come back.

But Scalebound is not a studio.

Microsoft going to acquisition Japan

Obviously it's true because Sony keeps censoring Japanese content while giving Western games a free pass on their systems. A lot of Sony fans don't want to admit it, but Sony has changed a lot since the days of PSP and even Vita.

I'm with Pedro on this one. Not good for anyone.

That said, Japan is obviously still important to Sony when they continue to make exclusivity deals for games like FF16.

Saying that Japan doesn't matter to Sony is ridiculous. That's home base for them. Even though console gaming isn't as popular as it used to be before all mobile craze, it's still an important market.

As for MS, if they have the money and companies are willing to sell, why not? If they want to be competitive, they have to compete and in order to do so, they need more exclusive content. What's the point of having the most powerful console on the planet if you don't have anything to flaunt? If I was Phil, I'd buy Platinum Games immediately despite the fallout from Scalebound.

Money talks...

@louixiii: I wonder if MS will buy Sega. Seem like something they would be interested in.

No it's not. They moved PS HQ to California.

It's interesting that the article says "It's reported that one of the studios approached includes Koei Tecmo. President Hisashi Koinuma reportedly stated that he was willing to consider releasing more games on Xbox 'if the U.S. company shows continued interest in Japan.'"

I don't think Koei Tecmo will agree to the acquisition by MS, but their games like Nioh may appear on the Xbox platform in the future. Also, depending on the amount MS will pay, they may sign a timed exclusive deal for games such as the next-gen Nija Gaiden or DOA (again!), which may or may not be a big deal for some.

Sure is attractive to have MS handling the publishing for Developers wanting to join Xbox Game Studios and focus more on creating, along with MS having Xcloud, that can put your games into a lot of hands.

They already have tango gameworks so another Japanese addition wouldn't be so far fetched. It's been obvious Sony have prioritised us and uk over japan in recent years.

Japanese games suck. Let’s be honest. If Xbox starts buying Japanese studios in my opinion that will be a waste of money.

Outside of hot female character models, Japanese devs bring nothing to the table. They have the wonky controls, weird stories. Just odd in general.

Blanket statements like this are born of pure ignorance.

I wonder how many decades its going to take for Cows to stop talking about Rare, lol. Microsoft's acquisition of Rare will be old enough to drink soon, yet its still the ONLY example Cows fall back on to prove Microsoft mismanages developers.

None of them talk about the 8 First Party studios Sony closed down in the past 10 years alone, or the even larger graveyard of 1st and 2nd party studios that died during the PS3 generation. But they never stop talking about Rare, a company Microsoft acquired in 2002.

@briguyb13: nope. Just experience with the games. Haven’t enjoyed a Japanese game since the mid 360 days. There games haven’t evolved since then.

With all the smoke we've seen out of Microsoft and Sega over the last few months/years, Sega now selling their arcade business, and reportedly asking 650 people to retire, this makes me believe something big is imminent. It looks like they're restructuring the company to get acquired.

There are some regulations in place from the Japanese government regarding to acquisitions from foreign companies.

Japan tightens rules on foreign stakes in 518 firms, citing national security

What systems have you owned for the past 5 years?

No reason to cheer any of this, MS should build studios not buy them off. And this goes for Sony and Nintendo as well.

I pity the fools who would cheer for this kind of news.

@briguyb13: Irrelevant question. But I own all systems except the switch. I am here to tell you, Japanese games have gone down hill. The only improvement they have made is visually. Game play and story is still the same old crap.

Check out Octopath Traveler, I think it's on PC now.

They might. I've asked around here and there but everything points to it being unlikely. I mean, I could see MS buying them especially since they remind me so much of Sega in the early console days but everything I'm hearing says it's not happening. Now...Sqaure-Enix. That's a different story ;)

That's incorrect. They main HQ is Minato City, Tokyo. They've had a branch here forever btw but their "main" headquarters is in Tokyo.

https://www.google.com/search?q=where+is+Sony%27s+main+headquarters&rlz=1C1CHBD_enUS789US789&oq=where+is+Sony%27s+main+headquarters&aqs=chrome..69i57j0i22i30i457.7176j0j15&sourceid=chrome&ie=UTF-8

That's not Playstation HQ though...

I'm not ruling it out but everyone I asked has told me that MS doesn't want Sega but hey, I've seen stranger things happen. Never thought MS would've bought Zeni nor did I ever think Square and Enix would've merged but things happen.

Just because SONY is working hard to get more to/from the US doesn't mean they no longer care about Japan. Just like how MS is working hard to get more to/from Japan doesn't mean they no longer care about the US.

Its cow code for don't buy any that have allegiance to Sony, cows are very predictable lol.

Its no surprise Sony is abandoning its home in Japan as Nintendo is killing them, poor Sony lol.

MS needs to buy Mistwalker FIRST, and get sequels to Blue Dragon & Lost Odyssey.

Then buy Sega and get all those iconic IP's they own back in business.

Can't buy a Japanese company. Japan laws!

Yeah, I agree... I know I'm an Xbox fan & Xbox needed more 1st party studios, but we're going to end up with a lot of devs and games being locked behind different paywalls, like we're seeing in TV now. I don't think it'll be good for consumers in the long term. This is just going to start an arms race.

As an Xbox fan, I can’t say I care that much about Japanese gaming. MS needs to do this delicately because a lot of us pick Xbox because they aren’t Japanese focused.

I kind of think some of these companies that were just getting by in normal times are probably more worried about the uncertain future in this unfolding Covid economy, and I bet the idea of greater job security would be a lot more preferable to sticking to traditional. Money talks, shit walks, and all that.

If they could get one company, get Sega. If they can beg for ports, make it definitive edition collection of Persona 3 FES, Persona 4 The Golden, Persona 5 Royal. If they can rekindle an older relationship, make it with the Dead Rising franchise, and reassemble and reinforce the Capcom Vancouver / Blue Castle team. Also, work with Nintendo to expand Game Pass service to the Switch.

Oh, and buy Darkwatch IP from Capcom, have id Software make a reboot.

I would love it if they got capcom

Buying Japanese studios and having more Japanese games and thus more games on the Xbox doesn't make it Japanese focused, and are you forgetting the other 20+ studios that aren't Japanese or make Japanese focused games?

MS will never be Japanese focused, just as it shouldn't be entirely western focused either.