If we take a look at the 2024 bestseller list, we not only find dominant projects in the West, such as sports games, but also titles like Dragon’s Dogma 2, Elden Ring: Shadow of the Erdtree, and Metaphor: ReFantazio, among many others. Japan continues to be strong, and although it is true that some Japanese studios face difficulties competing with big Western blockbusters, it cannot be said that all of them have general issues. However, according to Shawn Layden, former CEO of PlayStation, many Japanese studios are still “struggling to repeat their past success” and are facing a “difficult situation” that is not actually widespread.
In a recent interview with IGN Japan, Layden expressed that many Japanese studios have been looking back for years, dreaming of recapturing their glory days. While some companies, like Capcom and SEGA, have been experiencing a resurgence for years, Layden recommended that Japanese developers focus on their local markets before trying to attract international audiences.
There are many Japanese studios that have been riding the wave of success for years
These statements have been interpreted on social media by some as a harsh criticism, while others believe Layden offers a biased perspective on the industry’s commercial approach. The former PlayStation executive’s comment seems to contrast with the recent success of several Japanese studios in the global market. For example, Capcom has experienced significant growth in 2023 and 2024, with successful releases and high expectations for 2025. Additionally, Team Asobi has captured international attention with Astro Bot, showing that Japanese developers continue to resonate worldwide.
While Square Enix’s situation is complicated, it seems the executive assumes that these problems are widespread in Japan. However, Layden hinted that the crisis of some Japanese developers may be more related to administrative decisions within these companies than to a specific global issue. The decline in sales of some major franchises can be partly explained by these decisions, suggesting that the challenges these studios face do not necessarily imply a rejection from the global audience, but rather internal and strategic issues.
Finally, it is worth noting that success and challenges in the industry are not exclusive to Japan. Western companies like Ubisoft have also faced difficulties in recent years. Similarly, the mobile gaming market, in which Japan has a prominent presence, continues to be one of the fastest-growing global areas.
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