Game Developers Conference
The Japanese Game Industry
- Past, Present, and Future
By Kenzo Tsujimoto
President, Computer Entertainment Supplier's Association
President and CEO, Capcom
1. Japan's Game Industry
that Led the World.
A unique "Business Model" originating from
[Nintendo Entertainment System (NES)] was
instrumental in the high growth.
(Learning a lesson from the "Atari Shock" of the early 1980s
which occurred before NES was introduced.)
(1) Set up a business model based on collecting
licensing fees to prevent sacrificing quality to
quantity.
(2) To conduct thorough quality control under the
premise not to offend public order and morals.
Reviewing History Together With the
Main Hardware
[Family Computer (NES)] 1983~
[Game Boy] 1989~
[Super Family Computer (SNES)] 1990~
[Play Station] 1994~
[Play Station 2] 2000~
Accumulated number of hardware shipments
*Hardware by Japanese
companies boasts close to a
90% share of global markets.
- Japanese corporations continue to
maintain global supremacy in [Video Game
Hardware].
- This is believed to be the result of
synergistic effect of [Video Game Software]
and [Video Game Hardware]
2. CAPCOM which developed
together with the history of
the game industry.
Company Profile
◆Company Name：
CAPCOM CO., LTD.
◆ Date of Initiation：
June 11, 1983
◆ Business Segment:
(1)Planning, development and sale
of software
(2)Management of amusement arcades
◆ Paid-in Capital:
\ 27,581 million
◆ Consolidated Net Sales：\52,668 million (in FY2003)
◆ Number of Employee：
1,206 (including consolidated subsidiaries)
◆ Stock Exchange Listings：Tokyo, Osaka
Blockbuster Franchises
[Title]
[Total Units Sales]
◆“Street Fighter” Series
24 Million Units
◆“Resident Evil” Series
26 Million Units
◆“Megaman” Series
22 Million Units
◆“Onimusha” Series
6.8 Million Units
◆“Devil May Cry” Series
4.6 Million Units
Hollywood Movie
[Title]
[Release]
◆“Street Fighter ”
December, 1994
◆“Resident Evil”
March, 2002
◆“Resident Evil Apocalypse” September, 2004
◆“Onimusha”
Summer, 2006 (Plan)
◆“Devil May Cry”
2007 (Plan)
3. This is the sole exportoriented industry in the
"contents industries".
Overseas balance of payments for the Japanese contents industry.
Source: Ministry of Economy, Trade and Industry.
Exports
253.2
billion
yen
Imports
910
558
176
30
Game software
Publishing
251
248
108
Movie
53
Broadcasting
program
29
Music software
[Past]
The industry grew on its own without any aid
from other sources such as the government.
The industry was able to grow freely without any
regulation or restrictions
[Present, Future]
The industry has grown considerably, but it is believed
that some appropriate amount of industrial development
policy would be needed for the industry to grow further.
4. Outline of Computer Entertainment
Supplier's Association (CESA)
Outline of CESA
Computer Entertainment Supplier’s Association (CESA)
An organization under the jurisdiction of the Ministry of Economy, Trade and
Industry which promotes the industry by conducting surveys, research,
proliferation and promoting enlightenment activities concerning the game industry.
◆Established: August 1996
◆Chairman: First chairman of the association Kagemasa Kozuki (Konami)
Second generation chairman (Present): Kenzo Tsujimoto (Capcom)
Vice Chairmen: Four (Konami, Sega, Namco, Hudson)
Senior Director: One person (full time)
Executive Directors: Five (Koei, Square-Enix, Taito, Microsoft, EA)
◆Membership: About 170 companies
(Including Nintendo, SCE, Tecmo and Bandai.)
Outline of CESA
◆Main Activities
Committee activities
Tokyo Game Show
CESA GAME AWARDS
CESA Developers Conference（CEDEC）
CESA Game White Paper, survey reports
◆Related Organizations
Computer Entertainment Rating Organization
（CERO）
Activities of CESA committees
・Events: Tokyo Game Show, CESA GAME AWARDS
・Technical: CESA Developers Conference
・Human Resource: CESA Students Game Awards
・Research and Relations: CESA Game White Paper, public
relations activities
・Intellectual Property: Protection of copyright, measures
against pirated editions.
・Distribution: Approving secondary usage to complex cafes,
etc.
・Ethics: Improving and checking the rating system.
・On-line community: Promoting on-line game, community
business.
Organization Structure
Introduction of Main Events, Activities
Tokyo Game Show
Click!!
Past Record of Tokyo Game Show
September 24 (Friday), 2004 Business Day,
25 (Saturday)/ 26 (Sunday) Opened to general public
- Record high 117 companies exhibited their
products.
- Thirty overseas companies exhibited their
products to register record high participation.
- The number of visitors totaled 160,096 people.
- Annual increase in the number of overseas press
attending.
The number of media and press attendance:
1,198 firms/3,448 people
Gateway to Asian and Western Markets
■A Show for Leading Global Markets
・Strengthen response to overseas visitors.
・In 2004 visitors came from 22 countries/ regions
from around the world
◆Overseas Visitors by Countries/ Regions
Other 1.3%
North
Europe6.0%
America
13.2%
Asia 79.5%
Worlds Largest Game Festival
Target Visitors: General game users
◆You are able to directly advertise your products to
the consumers.
◆Establish brand image
Capture new users / A place to conduct market survey
ＣＥＳＡ ＧＡＭＥ ＡＷＡＲＤＳ
A system to select and honor outstanding game software
by respective categories. Announced Every October
(1) [Game Awards of the Year]
To select and honor outstanding game software among those announced over
the past year. The award recipients are decided after the candidates go
through a preliminary selection stage through ballots cast by general
consumers and through secondary screening by a screening committee.
(2) [Game Awards Future]
To determine the award recipients through balloting by general consumers from
among unreleased titles announced at the Tokyo Game Show.
(3) [Game Awards Indies]
To determine award recipients through public solicitation and screening of
original games not commercially released.
ＣＥＳＡ ＧＡＭＥ ＡＷＡＲＤＳ
Award Recipients for Fiscal 2004
【Grand Award】
MONSTER HUNTER (CAPCOM)
【Award for Excellence】
DRAGON QUEST V TENKUUNO HANAYOME (SQUARE ENIX)
KatamariDamacy (NAMCO)
Pokémon Fire Red / Leaf Green (The Pokémon Company)
WORLD SOCCER Winning Eleven 7 (KONAMI)
Six other titles
【Global Award】
Need for Speed Underground (Electronic Arts)
SMACK DOWN HERE COMES THE PAIN (YUKE'S)
CESA Game Awards
(Award Announcing Ceremony)
CESA Game Awards
(Award Announcing Ceremony)
CESA Game Awards (Notification Poster)
CEDEC (CESA Developers Conference)
• The so-called Japanese version of GDC.
• The largest conference for game developers where
more than 1,300 developers from Japan assemble.
• Held every year in early September. Seven
conferences will have been held from 1999 to 2005.
CEDEC(CESA Developers Conference)
Sessions implemented in 2004
・Development techniques for fun games based on ‘amusement
science’
Toru Iwatani NAMCO
・How do we cope with issues on the negative impact of video
games?
Akira Sakamoto Ochanomizu University
・Realtime physics simulation techniques and game
Shoichi Hasegawa Tokyo Institute of Technology
・Penguin‘s recommendation
Masaya Matsuura NanaOn-Sha
CEDEC(CESA Developers Conference)
・Movies and Games`similarities and differences`
Sento Takenori Rumble Fish、Kozy Watanabe GTV
・Producing original work.
Atsushi Inaba Clover Studio
・Microsoft Meltdown
・NVIDIA Iron Developer
・IGDA Academic
・Implement more than 90 programs during the three-day
conference, including lectures, roundtable discussions and
work shops.
・In the future we hope to promote exchange of information at an
international level, including forming ties with GDC.
Rating System
- The system was started in October, 2003. CERO is in
charge of screening.
- Some 1,700 titles have already been rated.
- Types of categorization by age (four types)
- Contents icon (nine types)
- The main objective is to provide information to the
consumers and not to apply restrictions.
- There is a need to strengthen cooperative relations
and exchanging information with rating organizations
like ESRB.
Rating System
Age category mark
Suitable for
all age
groups
Suitable for
those 12 years
and older
Suitable for
those 15 years
and older
Suitable for
those 18 years
and older
Contents Icon
Love
Fear
Crime
Sexual
Drinking alcohol/
smoking
Drugs
Violence
Gamble
Language/
others
5. Game Market in Japan
Domestic gaming market
Home games: 446.2 billion yen (Source: CESA data)
Arcade Video Game Sales Amount: 164 billion yen
(Source: JAMMA Data from April 2003~ March 2004)
Mobile Game Contents: 34.4 billion yen (Source: DCAj Data)
Amount of Shipment of Japanese Game Companies
Amount of gaming shipments for both domestic and overseas markets(2003)
Breakdown of exported destinations
Hardware
Software
Market Receptivity of Overseas Products in Japan
Success Examples:
--Success of America's Electronic Arts Co. in Japan
--Sales performance of "Grand Theft Auto III", etc.
While it is sufficiently possible to cultivate the market, it
must be noted that about 1,000 new titles are released in
Japan, including those that are sold at extremely low
prices. Compared with other countries, the market in
Japan is intensely competitive.
Market Receptivity of Overseas Products in Japan
--Secrets to be learned from these success examples--[The need to accurately grasp the taste of Japanese
consumers]
- Marketing strategy is important.
- Learn about the Japanese market individually
- Team up with a Japanese company who knows the
situation in Japan.
6. Future Problems and Proposal
Future Problems and Proposal
1. Strengthen ties between GDC and CEDEC.
2. To obtain data on a global scale by exchanging market
statistics data.
3. Mutual cooperation in major events (adjust even periods,
mutual exhibits, etc.)
4. Joint measures against copying and pirated editions.
5. Cooperate in the investigation and research on the influence
games have on people.
6. Cooperation and exchanging of information on rating.
Promote an interchange in business and aim to expand
increasingly active market on a global scale.
Thank you
http://www.cesa.or.jp