The Effects of the Video Game Industry on Japan

The network effects in the video game industry are derived from the console system that is sold to consumers. If a company is able to increase penetration in this arena, though at-cost/ below-cost pricing or pull created through the development of desirable content, it can potentially lock in the added value of the video games sold for the system. Which is to say, the console locks-in the network effects in the industry and the games serve to reap the profits. The video games, however, may present something of a challenge in that they can be somewhat easily replicated by competitors. Nintendo used an encrypted chip system to reduce this possibility.

Gamers are gamers regardless of where they live. There are many gamers around the world, and one of the largest gaming populations is located in Japan. (Niizumi) Japan has been, and continues to be one of the largest developers and creators of both of video gaming consoles and video games around the world. (Niizumi) Japanese video games are beneficial to society and are an excellent source of employment to many in Japan.

In the last 30 year the video game industry has vastly changed. From pixelated games to having 3D graphics. From going to the arcade and using a quarter for paying games to having a microphone to talk to friends from around the world. While there are many differences there are also many similarities.

So, I’m going to change things a bit. Instead of just talking about dates and numbers, which can be boring; I’m going to give this a little casual twist. So, in order to start the history let’s get a few facts out of the way. Let’s talk about gamers, mainly because I’ll be using the term a lot; gamers are people who spent a lot of time playing videogames. The Average gamer playing video games has spent twelve years playing them. Adult gamers have an average of fourteen years of playing videogames, guys have an average of sixteen years, and girls have an average twelve years. Speaking of girls did you know that 47% of gamers are girls? I would have never guessed that, but it’s a fact. So, as of 2013 49% of all people who live in The United States owns a console. All of them that own a console have at least two of them. Me, I own eleven… I think I may have a problem. Anyway, now that some of the facts are out of the way let’s start, THE HISTORY OF VIDEOGAMES! Now before I start I want to talk about all the most important events in the history of videogames, as I call them eras. Each era is very important because they shaped the videogames we know and love today.

However, the extent to which the hardcore gaming demographic dictates the structural aspects of the gaming industry as a whole is remarkable. Companies are still willing to cater to this audience because it is a profitable enterprise, as it is only the most devoted of fans who will line up days before a system release while generating free publicity on the internet and through word of mouth in the months prior. Thus, and perhaps unexpectedly, an important factor in the Wii's meteoric rise was Nintendo's ability, through the strength of its brand and residual nostalgia effects, to co-opt this hardcore gaming culture with a console that at best, only occasionally acceded to its wishes, while at worst, marginalized them completely. What Nintendo realized, and ultimately capitalized on, was that the hegemonic structure influencing the industry was inherently weak, in that it was essentially a small minority overwhelming the relatively silent masses. Although there are doubts to the sustainability of such an endeavor, the signs are present that the Wii has already altered the video game

Video games have made a killing in the world of entertainment, it is a multibillion dollar industry.

When video games were first being introduced to the general public they weren’t all that

Pocky, Anime, manga, kanji. Have you heard of any of these? If not… where have you been? All around us teenagers, children, and even adults are being drawn into Japanese culture through TV, books, and even food. Japanese comics, called manga, take up more and more space on American bookshelves, and they've infused new life into the publishing industry. Japanese animation, anime, is on more and more movies and TV screens and influencing popular toys and games.

Nintendo started up as a small business in Japan. It was founded by Fusajiro Yamauchi on the 23rd of September 1889 as Nintendo Koppai. Being based in Kyoto, Japan, it marketed and produced Hanafuda cards. These cards were handmade and soon they began to gain popularity and Yamauchi needed to hire assistants so as to mass produce in order to meet the high demand. Between 1956 and 1974, Nintendo ventured in toy productions rather than just the production of cards. Being a small company, it struggled for survival in the Japanese toy industry which was dominated by companies such as Tomy and Bandai.

Anime over the past few decades has decade increasing important in American society. This is important as anime and related products generate over 1/3 of international media revenue (Shirong Lu, 2009). For example, the English release of the Japanese mobile app, Pokémon GO, has gone viral in the United States, with people young and old playing and catching Pokémon. Every year in California, Anime Expo was held bringing over people from all around the world. This year there was overall turnout of over 300,000 people to the convention. Funimation, a leading supplier of anime across North America, has convert several animes since 1994, creating an English version for viewers to enjoy and broadcasting newly release shows. People daily cosplay, designing and creating outfits, dressing as different anime characters and attend different events. Anime has a huge impact today not only in the United States, in the several other countries around the world, converting into over 30 languages (Shirong Lu, 2009). It is important to see how people view race in anime since it has an international audience.

Video games in today’s society have become very popular. Every new game that comes out to be played and conquered by the average gamer has its own category. There are several other types of genres of games that people play but because of big hit titles and the new popular game systems like the Xbox 360 and Playstation 3, people become more interested in a game that is well known than a game they have never even heard of before. Every game has its own storyline and own way of how it unfolds and where the game ends according to game play. Some of the biggest reasons people sway to certain genres of games is because of the game titles released under them and the demand of people who want a good game under that category. The top three most

The gaming industry has evolved from a small production into a blockbuster business and is the fastest growing category of mass media around today. This industry is a vital part of the global and U.S. economy, contributing to job opportunities and a constant increase in GDP revenue. With sales that outweigh most other markets, gaming has added to the GDP by almost $5 billion. The revenue from gaming is an estimated $82 billion which is five times greater than global music, $16.5 billion, and similar to movie revenues (André Marchand and Thorsten Hennig-Thurau 2013). Over a 25-year period, the gaming industry has grown annually between 9% and 15% which is outperforming the U.S. economy, at only a 2.4% annual increase. The expansion that this industry has undergone in just the last decade has bean a huge feat for the economy as well as the U.S. culture.

Globalisation has had a profound impact on the Japanese economy influencing levels of international trade, business operations, financial flows, government policy, labour markets and even environment. This movement has been driven primarily by numerous TNCs, trade liberalization, and the deregulation of the financial system, and numerous strategies adopted by the Government and Economy, resulting in the creation of a 'new' Japan.

Herman et all (2002) points out that history of video games begins from 1971 year, when Nutting association released 1500 machines with Spacewar video game. At the beginning it was too difficult to control the game process and playing machines had huge dimensions. But by the time with new technologies they become more compact and easier to play. According to the information given by Herman et all (2002), the period between the years of 1978-1981 is called ‘golden age’ of video game industry. In this period the arcade games ‘Football’ and ‘Space Invaders’ were released. All previously known sale records were broken by these two games with nearly equal wages. In this time interval great breakthroughs in the field of graphics were achieved,

As the "world 's largest test cult phenomenon" (Grossman, 2004: 27), video games have already developed into a global entertainment industry nowadays. The game market in China is dominated by foreign games as to the low-tech situation, which has laid the importance of video game import and