Japan is one of the largest and most influential game markets in the world. It’s home to industry giants like Nintendo, Sony, Capcom, Sega, and Bandai Namco. Games have become an integral part of Japanese culture, and local developers set global trends in game design, art styles, and innovation.
The gaming industry in Japan spans console and mobile games, PC gaming, arcade machines, and cloud technology. In recent years, interest has grown in esports, VR (virtual reality), and mobile games, reflecting the changing preferences of players from Japan. In this article, we’ll take stock of the Japanese game market and its statistics.
Key statistics
The Japanese game market has traditionally centered around consoles and portable devices. Companies like Sony (PlayStation) and Nintendo (Switch) hold strong positions in Japan, offering exclusive projects that are adapted to the tastes of the local audience.
Mobile games, especially free-to-play models with microtransactions, have gained enormous popularity. Hits like Fate/Grand Order, Monster Strike, and Genshin Impact bring in billions in revenue, and their audiences keep growing.
Fate/Grand Order. Source
On the other hand, PC gaming lags behind other Western markets—in Japan, console and mobile games are most popular. That said, Steam’s popularity in Japan is growing, particularly among fans of indie games and Western AAA projects. Statistics for November 2024 show that Japanese is the 6th most popular language in Steam, at 2.91% of users.
Here are some stats on finances and reach:
- In Japan, gaming market revenue is projected to reach $50.94 billion (USD) in 2025. The annual revenue growth rate (CAGR 2025–2029) is expected to reach 5.12%, resulting in a projected market volume of $62.19 billion (USD) by 2029.
- The Japanese market is not the world’s largest, however. The title of world leader in revenue belongs to the United States, where revenue is expected to reach $141.80 billion (USD) in 2025.
- The number of users in the game market in Japan is expected to reach 66.0 million by 2029. Moreover, the average revenue per user (ARPU) in Japan is estimated to reach $1,747.00 (USD).
Who, what, and how they play in Japan
Players
According to data from the CESA Game Industry Report for 2024, there were 55.5 million gamers in Japan in 2023. This is the highest number in the last 5 years. What’s more, the number of users in Japan who play on more than one platform grew from 5.9 million in the previous year to 7.3 million in 2023, an increase of around 18%.
The average age of gamers is 36. Women account for 43% of the overall number of gamers in Japan. According to research by 80 lv, in a year Japanese gamers spend, on average, $1,275 on games.
Platforms and genres
- The Nintendo Switch is the most popular console, thanks to its portability and ease of use.
- The PlayStation 5/4 is the main platform for hardcore gamers.
- For mobile devices (iOS, Android), players prefer games with Gacha mechanics.
- PC (Steam) is a growing but still niche platform.
- Arcade machines are a part of traditional entertainment culture. Arcades are more than just a place for games, they’re an entire socio-cultural institution that brings together gamers and forms a part of modern Japanese subculture. Arcades are multi-floor buildings totally devoted to gaming machines. They’re widespread in big cities, especially in Tokyo, and operate 24/7.
Arcade machines. Source
These games rank among the most popular:
- RPG (roleplaying games)—Final Fantasy, Persona, Dragon Quest.
- Fighting games—Street Fighter, Tekken, Super Smash Bros.
- Visual novels—Steins;Gate, Clannad, Fate/stay night.
- Gacha games—Genshin Impact, Fate/Grand Order, Uma Musume: Pretty Derby.
- Tactical and card games—Yu-Gi-Oh!, Fire Emblem.
Game art styles
Any discussion of games must touch on art styles, which can differ from Western art.
- Anime style
This style features bright, expressive characters with large eyes. It’s used in RPGs, fighting games, and many mobile games. Examples: Persona, Tales of series, Genshin Impact.
Genshin Impact. Source
- Kawaii (cute) style
This style features simplified, round characters and bright colors. Childish and cartoon images are prevalent. The style is popular in Nintendo games and mobile gaming apps.
Games in the kawaii style. Source
- Pixel art
An art style based on 8- and 16-bit graphics with a nostalgic design. Pixel art is often used in indie games and retro RPGs. For example, Project Kat.
Project Kat. Source
- Photorealism
This style features highly-detailed textures and animations. It’s mainly used in high-budget AAA games. Examples: games from Square Enix studios.
Life Is Strange—a game developed by Square Enix’s European branch. Source
Japan—a country of trends
The Japanese gaming industry is the source of unique ideas and innovations that often become global trends.
- The rebirth of tactical and complex RPGs
For a long time, Final Fantasy Tactics, Fire Emblem, and Tactics Ogre were only popular in Japan, but now things are changing. More and more, Western developers are being inspired by hardcore combat systems (Star Wars Jedi: Fallen Order, Lies of P). Tactical RPGs are gaining popularity, as seen in the success of XCOM, Marvel’s Midnight Suns, and Gears Tactics.
Soulslike games (similar to Dark Souls, which was also developed in Japan) have become a full-fledged genre that studios across the world concentrate on.
- The explosive growth of Gacha games and “anime aesthetics”
Gacha mechanics (from the Japanese ガチャ, “gachapon”) are a system found most often in mobile games, where players receive random virtual items or characters through a mechanism that resembles a vending machine or lottery.
Gacha mechanics are being used more often in Western games (Diablo Immortal, Marvel Snap). The success of Genshin Impact has inspired Western companies to experiment with anime styles (for example, in Tower of Fantasy).
Even major franchises like Assassin’s Creed and Call of Duty are adding collection elements and season passes.
- A focus on social and co-op mechanics
In Japan, games you can play with friends are popular, like Monster Hunter, Final Fantasy XIV, Splatoon, Dragon Quest X. Even single-player games often have asynchronous online elements (Death Stranding, Dark Souls).
Games with co-operative elements have become standard (for example, Elden Ring lets you summon other players). The popularity of Final Fantasy XIV spurred the growth of the MMO market, even inspiring Blizzard to improve World of Warcraft.
Western developers are more frequently integrating social mechanics, even in single-player games (even Cyberpunk 2077 tested multi-player but decided against it).
- Games inspired by anime and manga
Adaptations of famous anime series as video games are popular (Dragon Ball Z: Kakarot, Demon Slayer: Hinokami Chronicles).
Western studios are starting to introduce an anime aesthetic (Persona 5 Royal gained popularity in the West, and CyberConnect2 is working on a manga adaptation). Netflix and other streaming services are investing in anime, leading to Japanese plots becoming more popular in video games. Western indie developers are inspired by Japanese VN’s and JRPG’s (Doki Doki Literature Club!, OMORI).
- Developing a “new school” of horror
The trend is a return to psychological horror (Silent Hill 2 Remake, Resident Evil Village).
Western horror games are borrowing Japanese elements more frequently (for example, The Medium by Bloober Team was inspired by Silent Hill). Indie horror games in the Japanese style are gaining popularity (Phasmophobia, P.T. inspired games).
- Virtual reality (VR) and augmented reality (AR)
In Japan, VR is actively used for arcade machines and games played at home (Sword Art Online VR, VR Kanojo).
AR is used in mobile games (Pokémon GO, Dragon Quest Walk).
Pokémon GO became a global phenomenon, proving that AR games can be commercially successful. VR games like Resident Evil 4 VR are advancing the genre in the West.
Meta and other companies are trying to create a meta-universe, inspired by VR experiments from Japan.
What’s the best way to adapt a game for the local market?
For a game to be successful in Japan, the key is high-quality localization that adapts both the language and all cultural sensitivities, which there are a lot of.
Language
Japanese uses three writing systems: kanji (漢字), hiragana (ひらがな), and katakana (カタカナ). English or Latin words are often rendered in katakana (computer → コンピューター), but sometimes they need to be adapted for ease of understanding. Texts, especially in video games, require careful adaptation, so they sound natural and are easy to read.
Japanese uses keigo (敬語), a system of honorifics that is essential for characters with different status.
Different characters must speak in the style that matches their personality (a samurai uses archaic forms, while a schoolgirl uses modern slang).
Male and female speech differs, for example:
- I will go (male): 俺は行くぞ (Ore wa iku zo)
- I will go (female): 私は行きますわ (Watashi wa ikimasu wa)
Japanese texts are read slower than English ones, so subtitles and lines of dialogue in cutscenes must be adapted for length. Sometimes, furigana (small hiragana symbols over complex kanji) are added to texts to make reading easier.
Culture and censorship
As in any culture, in Japan some themes are considered problematic. These include:
- Death and the afterlife. Many Japanese games replace the word death (死, shi) with softer expressions like disappearance (消滅, shōmetsu) or defeat (敗北, haiboku).
- Religion. It’s best to avoid direct references to Western religions. Explicit mention of Christianity, Buddhism, or Shintoism may be problematic. For example, in games, crosses are often replaced with abstract symbols (Persona 5 Royal replaced scenes with monks to avoid religious connotations). Angels and demons can be renamed or changed (Shin Megami Tensei often adapts the names of deities).
- Sensitive topics. Violence, narcotics, and sexual content may be censored (for example, censorship in the Japanese version of The Last of Us Part II).
- Sarcasm, dark humor, and pop culture references. Japanese audiences may not understand these. For example, The Simpsons Game failed in Japan because local players weren’t familiar with American memes.
Voice-overs and visuals
Japanese video games often use “partial voice”—only the most important lines are voiced, and the rest of the text remains as subtitles.
If a game is localized from English, you need to consider the difference in emotional delivery. Japanese voice-overs are often more expressive, as is the language itself. Players in Japan often prefer Japanese voice-overs, even in Western games, so adding a Japanese dub might increase sales.
In Japanese games, the text might display vertically, especially in visual novels or RPGs. It’s also important to remember that Japanese text takes up less space but is harder to read in a small font size. Using the wrong font might make your game unreadable or make it look cheap.
Here at INLINGO, we know and can handle all of this. Drop us a message, and we’ll discuss your project!
