Tales of Vesperia: Xbox 360 Outsells PS3 In Japan

Sony’s been talking about how they’ve overtaken the Xbox 360 here in the States, perhaps this is because Microsoft shifted their attention to pwning them in Japan? Xbox 360 sold 25,000 units to PlayStation 3‘s minor 9,673 units according to Edge Online, that’s 2.5 times more if you’re into that math thing.

Seriously though, Microsoft didn’t really shift any effort, they just got a Japanese style game called Tales of Vesperia from Namco Bandai. Go figure, when a Japanese focused game arrives for a console Japanese gamer will go out and buy it.

The big barrier to the 360 in Japan is the games and their contents. Microsoft is in tune with the needs and demands of the United States gamers, it usually involves FPS titles and excessive killing. Japanese gamers are not exactly huge FPS fans, we’ve seen the Asian community dominate in RTS style games (Starcraft is a great example) and they’ve always had interest in MMO’s, especially micro-transaction based games and we all know that’s the land of Final Fantasy. Is it so surprising the Xbox 360 moves off Japanese shelves when they have a game or two the gamers actually want to play?

This is only partly Microsoft’s fault, Microsoft doesn’t specialize in Japanese games anymore than Square Enix excels at western style games. The big difference? Square Enix doesn’t manufacturer its own console hardware. It is Microsoft’s console and they should have an interest in making games the Japanese people will like, thankfully Namco Bandai came through for them this time!

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Nielsen Ratings, PS3 Played Less Than Classic Xbox?Nielsen Ratings, PS3 Played Less Than Classic Xbox?

In a WTF moment, Neilsen Ratings shows more gamers are playing the classic Microsoft Xbox console than the PlayStation 3. While 9.7% of gamers are playing the Xbox 7.3% are playing the PlayStation 3 but Sony isn’t out of the picture by a long shot, having 31.7% of gamers playing the PlayStation 2!

Only 13.4% of gamers are playing the Wii even though it’s the hottest selling console on the market, showing the fury of the casual gamer it seems. It’s trendy to own a Wii but it’s not trendy to play it; it would be interesting to see how much of the 13.4% is Wii Sports.

We’re guessing there are more classic Xbox gamers playing their console compared to the PlayStation 3 because of the console cost. You can find a used Xbox for under $25.00 on eBay but the question remains, who wants a used Xbox? The audience for the PS3 is more hardcore, more elite and more rare compared to the cost conscious gamers in the larger game industry pie.

More than likely, in ten years, we’ll see most gamers playing the PlayStation 3 while Microsoft works to claim demographics on whatever their next console will be. However, we’re not so sure how many Wii gamers will be playing their current generation console in ten years. Probably very few given the two year old console still has a small amount of gaming public.

(Thanks, 1up)

Sony, Next Big Software Company?Sony, Next Big Software Company?

Every day we’re hearing of a company running through a round of layoffs or going out of business, it’s really not a happy time. Sony is not immune to the economic troubles either. Sony is talking restructuring and that involves a potential head count reduction of 16,000 jobs due to plant closings.

floppyThis leaves Sony with some hard decisions. Restructuring can mean drastic changes that effect all their product lines. The PlayStation 3 isn’t currently a shining example of high profit margins. The console needs time to reduce its overall cost, chip sizes and bring profitability. Is it in danger?

“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.” (gamestooge)

The yen is losing value in our global economy making it more difficult to export the product and build any type of profitability plan. “A source said this month the company will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years” (news.yahoo.com) All this noise is making CEO Howard Stringer contemplate Sony’s involvement as a “software only” company, making us recall the changes at SEGA to this same result.

The Financial Times reported Sony will unveil details of its restructuring steps on Wednesday or Thursday. It said Chief Executive Howard Stringer was meeting with resistance from some executives to shifting the company’s focus to software from hardware and cutting jobs in Japan. (news.yahoo.com)

Is this just a case of a fearful executive trying to lay plans for a more stable future? Software is easier to develop, pays for itself quickly and becomes pure profit as it ages. Hardware requires constant upkeep at manufacturing facilities, chip reductions and a boat load of quality planning for first shipment. Would Sony go full software?

Let’s face it, Sony isn’t SEGA, they’ve been developing hardware for consumers since anyone can remember and they’ve been doing it with quality and market penetration. It seems absurd to think they’d forgo hardware designs in replacement of a full software solution to the problem. In addition, Sony has already invested a large amount of cash into seeing PS3 through it’s 10-year plan and letting that die now is realizing a huge loss on investment.

If Sony pushes through the economic and maintenance course, the PS3 will become highly profitable, much like the PS2 last generation (with a slower ramp up for sales). Even if they break even after ten years it seems a lot better than throwing all the effort away.

Perhaps Howard Stringer is talking “software” for the next generation home console? You think Sony will create a PlayStation 4?

Studios Closing: The Good, Bad and UglyStudios Closing: The Good, Bad and Ugly

Gamers around the world are going to feel the pain in the 2009 holiday season after the economy shakes apart many great development studios. Electronic Arts feels the pain of being a public company as their investors complain about lackluster revenue, THQ deals with closing studios to extend their runway and other firms will lose more headcount in the coming months.

It’s not all bad. But, it’s going to get ugly before it gets better.

The financial market has played tricks on everyone in our global economy and companies across all industries are going to feel a bit of a tightening around the belt. Investors are shaken and doing their best to protect their investments and cutting loose those that aren’t projecting profits in the near future. Game studios are going to slow their financial burn rates, trim a bit of the fat and hunker down the long term. The end result, next years holiday season will have a few less games because those games are being dropped to the floor now.

Mid-sized studios within larger firms may find their projects canceled or put on hold and their employees re-structured or let go while big studios assess what projects will make the long haul. This is the ugly side of the business, having to make a decision on what games stay and what games go with the grief of having to tell some of your best talent “goodbye.”

The bad part of the industry is occurring today, with publishers posting mediocre profits and trying to convince their investors to be patient and trust they’ve got a firm hold on their destiny. The game industry is not alone in this, many firms are reducing head count and many startups are finding themselves without series A or B funding; they’re closing their doors because the money is being directed to more stable ventures.

What’s the good in all of this?

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