Why Xbox Failed In Japan

Microsoft’s Xbox consoles have become a global hit. But there’s one market where they don’t work — Japan. Of the 46.9 million Xbox Ones sold worldwide through the second quarter of 2019, just 0.3% of them have been in Japan, according to IDC. Meanwhile, Japanese companies Sony and Nintendo are popular with consumers. When Microsoft announced it was developing a video game console, the industry was skeptical. In the ’90s, Microsoft was known for its software, not its hardware business. Almost two decades later, Microsoft’s Xbox has become a popular console, holding its own against Sony and Nintendo. But there’s one market where the Xbox hasn’t been a hit with consumers — Japan. When Microsoft released the Xbox in 2001 in the United States, Japan was the gaming juggernaut of the world. It was home to the three big console makers, Nintendo, Sega and Sony, and had the best developers. Microsoft faced three big challenges launching the Xbox in Japan. It had to convince Japanese developers to make games for Xb