It appears to be the beginning of the end for the Xbox 360 in Japan. According to Edge, Japanese retailers are scaling back their stock of Xbox products, with the console disappearing from some stores altogether.
The console has had a hard time in Japan. Despite strong sales in Europe and North America, the Xbox 360 has only recently surpassed 1.5 million sales. In fact so far in 2011, it’s estimated that only around 72,000 consoles have been sold in the country, a drop of 46.7 per cent compared to the same period last year, compared to around 735,000 PS3s.
Edge has been told that Geo, Japan’s largest specialist retailer is drastically reducing its Xbox 360 business. Meanwhile Yamada Denki is clearing stock of Xbox 360 hardware and software from the majority of its stores nationwide through heavy discounts.
Smaller retailers in Tokyo are also slashing the prices of consoles and games, with titles going as low as ¥100 (£0.79/$1.31/€0.91) and one store selling a Halo: Reach hardware bundle for only ¥9,980 (£79/$130/€91).
With Microsoft struggling to make an impact in Japan with both the original Xbox and Xbox 360, the company may struggle to convince retailers to make an effort for their next console when that releases sometime in the future.
Update: To clarify, Microsoft aren’t formally pulling out of Japan (nobody is suggesting that). We’re just hearing reports that retailers are clearing stock and pruning shelf space. Retailers are cutting back, if reports are to be believed. We fully expect Microsoft to provide reasons for Japanese retail to keep promoting their products at this year’s TGS. We thought that the story above was clear but it seems some people needed more clarity. [PC]
The Lone Steven
I think it’s time for MS to thrown in the towel on Japan as i doubt they are making a profit over there as their sales have been crap. :-/ But i wonder if we will see MS fight to sell more xboxs over there?
BIGAL-1992
I’d save face and fight to the bitter end if I was in charge of Microsoft in Japan. Why leave if you think you can possibly change it?
Sympozium Pawa
Yes pulling out wouldn’t fare nice with shareholders I guess?I’m not really sure, so no one take it as fact.
Foxhound_Solid
Bye bye green team.
OneShotWook
Heres a vid where Bill Gates addresses the issue.
http://www.youtube.com/watch?v=Ss_pt6YmOic
Awayze
Why would the Japanese buy an inferior console to their own PlayStation?
PS3 has games that Japanese love and I’m pretty sure the Japanese hate the 360 controller with its awkward joysticks and battery pack.
DrNate86
In other news, 9 out of 10 people prefer made up facts.
AG2297
Amazing ability to state opinion as fact there
CrawFail
He’s got a point… The original Xbox’s ‘Butch’ pad was replaced by the ‘Bitch’ pad because of the Japanese market. Their smaller hands couldn’t operate the controller as well as the design intended.
CrawFail
*disclaimer*
Above comment was not meant to be racist… if it came across that way :/
TSBonyman
I’m thinking the Japanese people are probably more focused on supporting their own, especially after the devastating blow they were dealt by the tsunami and nuclear catastrophe.
MayContainEvil
Well with sales like they’ve been having and the stagnant games market I guess it was only a matter of time until something like this happened.
CrawFail
It’s a shame to see them lose their place in the market, but it goes to show that you HAVE to offer an audience something to create a staple in the market place.. no amount of money and marketing can push a product if it doesn’t hold the consumers attention.
I also wonder whether their recent troubles and devotion to boosting their own economy has had a slight hand in the lack of sales for the Xbox?
But on the other hand… what I do know is that of all the gamers that I know in Japan, literally none of them would consider an Xbox as a primary console purchase. One even told me that it’s rare to find 360’s in the used market because there are so very little places that sell them… so from the sounds of things, this has been a long time coming.