We all love it when our favorite worlds come together. It’s as if some things are simply meant to be, and together, form something wonderful. Something almost magical; and one couldn’t imagine it not being in existence, because quite frankly, the world is worse off without it. Johnny Depp is a good example. The guy just rules, is unquestionably brilliant in everything he does, and the world of films just wouldn’t be the same without him. Along comes a movie about pirates – which is like every boy’s dream – and you’ve got Pirates of the Caribbean. Once it exists, you can’t imagine it not being there, and you can’t fathom anyone else in Johnny Depp’s shoes. No one else could pull it off. It was just destined to be.
And then there are other things that don’t go so good together. Like Xbox and Japan. Since the Xbox’s launch, Microsoft just can’t seem to get a foothold in the fickle land of the rising sun. Almost as if no matter what Microsoft does, the two just don’t seem destined for one another. If you’re a PS2 and GameCube fanboy, you’re likely laughing at Microsoft’s attempt to enter, and be successful in Japan, but it’s a market that’s not easy to break.
If you can get that classic image of what a tourist looks like in your head, that’s Xbox in Japan. In Japan, Xbox walks the streets, dressed in a white tank top, multi-colored Jams, white socks pulled halfway to the knees, and Flip-Flops. It’s got a camera around it’s neck, and a straw hat to block out the nasty sun. And more importantly, Xbox is making it clear to the natives that it’s an out-of-towner, drawing enough attention to let everyone know it’s there, but not something the natives want to approach. In fact, the natives laugh at it, and point. Pointing is always the worst.
Now, it’s true that Japan has suffered from an economy that hasn’t had a very positive rise in over six years, so a bulky, expensive machine with no killer apps is a problem, but there is much more to it than that. Microsoft faces a long list of problems that are affecting their Japanese endeavors, but all hope is not lost. They are a company that is suffering from mistaken identity, and need to let the land of Japan know who they really are, and what they have to offer the industry that their competitors don’t.
Build on Your Strengths The Xbox is the most powerful home console ever made, but it’s not being treated like one. In fact, in Japan, the Xbox is being looked at like a substitute to PlayStation 2. The Xbox is not being treated like it’s own phenomenon; it’s being looked upon as an alternative. And when you’re in Japan, you’re going to go with the Japanese make, and you’re going to go with a name you trust. What is Xbox? To Japan, the console is virtually non-existent, which is the problem.
"What I’ve mentioned was something that had been realized with the PlayStation. There were musical games, and more and more students decided to participate in games [development]. But when moving on to the PlayStation 2 I think we lost some of that spirit. I believe the Xbox inherits that spirit which originally existed and that is why I have joined with Xbox."
- Toshiyuki Miyata, Director Xbox Japan, on why he left Sony for Microsoft
Microsoft is trying to solve this by doing what PlayStation 2 is doing. Instead, it would be a smarter idea to take a different approach, and go everywhere the PlayStation 2 isn’t. In order for Microsoft to make a big splash in Japan, it has to do what the others are not. Sony didn’t beat Nintendo at it’s own game; they changed the game altogether. And they did that because Sony knew they couldn’t beat Nintendo at their own game. But by the time Sony changed everything (including the whole business), Nintendo didn’t know what hit them. And today, lo and behold, the theories Nintendo lived by (and still does in some cases) are no longer effective. Nintendo, to get back on top, needs to once again change the game. Microsoft is in the same position. To change the game, you must first stop mimicking the moves made by your competitors. Build on your own strengths, not PS2’s.
Another strong point of Xbox is that it has gained momentum in both the U.S. and Europe; two distinctly different cultures. If it can do that, it can conquer Japan, should it play it’s cards right. The Japanese are fickle, but not impossible. The Japanese support is essential however; as conventional wisdom says a console can’t be a success without Japanese support, and a lot of it. And while Microsoft is cocky enough to believe they can just split the market (where Xbox dominates both the U.S. and Europe with no presence at all in Japan), it’s a headache Microsoft doesn’t want, especially since the mega-company’s competitors are having no such problems.
Another strength of Xbox is it’s Live service. Plain and simple, there is no better choice from broadband gamers to play their consoles online. And unlike America, which is a huge country still for narrowband, the Japanese culture has fully embraced broadband connections, a perfect fit for Live. Here, Microsoft has a distinct advantage over the competition. But where’s the push?
Conquer Your Weaknesses Even more important that playing up your strengths, you need to face your faults, and eliminate them one-by-one. The first one of Microsoft’s is to adapt to what the Japanese are all about. Don’t look like such a tourist. There is only so much you can do to change the design and size of your machine, so don’t worry about that (but keep in mind for the future, eh?). Instead, attempt to take focus away from it. It’s critical to adapt to the new market in which you enter. Either the people want to associate with you or they don’t. The Xbox currently falls into the latter category. Adapting is crucial, simply because refusing to do so will only further alienate the brand, revealing even more of it’s non-Japanese roots. Microsoft doesn’t have to make their machine look Japanese, but it’s best to not make their American traits so blatantly obvious.
Microsoft has nothing to lose being a very distant third in a three horse race, so it makes sense to start experimenting with things. They need to get away from PS2 and GameCube, and start doing things neither of the others thought of. Advertising their western-style games in Japanese mags won’t work (Blinx? What the hell?). Sony and Nintendo already do that, and they do it better and have more credibility. So don’t go where they are. Catch the consumer by surprise with unique marketing ideas. By not doing so, Microsoft may be prone to making the exact same mistakes over and over again, so breaking the cycle now is a good idea. Gain that foreign allure. Try to sell the hardware like playing it makes one superior to the rest.
They must invest in their own exclusive games rather than go after everyone else’s. The last thing they want to do is try to sell something different when all it offers is more of the same. Don’t worry about the next Metal Gear. Push games that take advantage of the hardware, and only those titles, but also titles that Japanese gamers would be attracted to. They aren’t fond of games like Halo. Don’t try to make them like it. Microsoft’s console is home to some great exclusive titles, but the problem is, those games aren’t appealing to the Japanese market in the slightest. Normally, coming up with a smattering of your own exclusives and mix those with a variety of third party releases would help, but the Xbox doesn’t even have that on their side. At this point, the console is having enough trouble locking up content everyoneelse already has in Japan, so they can’t even level the playing field, making it all the more important that they grab as many Japanese exclusives as possible.
But perhaps Microsoft’s biggest weakness is it’s ego and pure financial might. No one in the console wars has it’s resources, and unfortunately, they know it, and still abide by their own motto, which is, “if you can beat’em, buy’em”. It gets rather annoying, as much like a high roller in Vegas, they aren’t necessarily a good player, but they can spend until you bust, no matter how often you beat them. Ask anyone who gambles and loses to high rollers; no one likes them. That image has got to go. You can always buy your way somewhere, but the money won’t make people love you. In America, and to a lesser extent, Europe, those tactics can take a company quite far, but in Japan, it just won’t work. Microsoft has it in it’s head that if the Japanese development community don’t bite at their hook, they can simply buy the fish. The solution is simply to realize that isn’t true, and be aware of your competitors. And remember: change the game.
Surviving the Game Microsoft has thus far – thanks to their deep pockets – been a success without the conventionally-mandatory Japanese software support. But their lack of presence in Japan is noticed, and slowly taking it’s toll. And Microsoft hasn’t done much to prove that they aren’t anything more than an American alternative to PS2.
Could conventional wisdom be wrong? Could Xbox survive the long haul without any help from the Japanese? They have so far, but one can only wonder how long it’ll last.
At the 2001 Tokyo Game Show, Xbox Japan Director Toshiyuki Miyata said, “Xbox continues the spirit of PlayStation”. Of course, that’s not true. The spirit of PlayStation is continued by PS2. Change the approach. Change consumer expectations. Change the game. Change everything. Don’t try to build off of PS2. If Microsoft really wants Xbox to be a legit, stand-alone competitor to PS2 and GameCube, and become the undisputed king in the console market, their situation in Japan must be resolved.
