Japan’s Computer Entertainment Supplier’s Association (CESA) has recently unveiled intriguing insights into the domestic video games market, highlighting a remarkable surge in the PC gaming segment. Since 2019, this sector has been on an upward trajectory, expanding its market share significantly.
PC Gaming Market Growth
According to CESA, the PC games market in Japan has experienced a staggering growth of 2.87 times over the past four years, escalating from ¥82.2 billion (approximately 0 million) in 2019 to ¥236.4 billion (around .61 billion) in 2023. This impressive figure translates to a growth rate of 187.5%. It’s important to note that these statistics pertain solely to software sales within the video game industry. Serkan Toto from Kantan Games pointed out that while the dollar figures may seem modest, they are influenced by the persistent weakness of the Japanese yen over recent years.
In contrast, other segments of the gaming market have shown varying degrees of growth. The console games market has increased by 39% during the same period, reaching ¥386 billion (approximately .6 billion). Meanwhile, mobile game revenue has seen a more modest rise of 5.9%, totaling ¥1.23 trillion (around .4 billion). Excluding the initial surge at the onset of the pandemic, both the console and mobile segments have exhibited relative stagnation, with console revenues declining by 2.1% since 2020.
As of 2023, the PC gaming segment now constitutes 13% of Japan’s total video game revenue, a notable increase from just 5% in 2019. This trend raises questions about the potential for further growth in the coming years.
Steam’s Expanding Influence
The upward momentum of Japan’s PC games market aligns with insights shared by Valve earlier this year. In their business update, Valve reported a significant expansion of Steam’s user base across various regions, including Asia. Notably, the number of new users in Japan has surged by over 150% since 2019.
Additionally, data from GameDiscoverCo indicates that Japan ranks 10th among Steam games with over 100,000 owners for releases between 2021 and 2024, capturing a 1.97% market share. This statistic underscores the growing allure of premium PC gaming in a country that has traditionally favored console titles.
