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Japan Today
4 days ago
- Entertainment
- Japan Today
Sega eyes return to 1990s gaming glory
Sega opens its first flagship merchandise store in Japan on Friday By Katie Forster The big-screen success of 1990s video game speedster "Sonic the Hedgehog" has brought new fans to Japan's Sega, which says it is poised for a comeback after two tough decades. This year all eyes have been on Nintendo, whose Switch 2 recently became the fastest-selling console in history. But unlike its former arch-rival, Sega has not sold gaming hardware since its Dreamcast console was discontinued in 2001, instead focusing on making games for other platforms. Now, as record tourism to Japan helps boost global appetite for the country's pop culture, the company sees a chance to reinvent itself -- including through nostalgic game remakes and movie adaptations like the hit "Sonic" series. Sega opens its first flagship merchandise store in Japan on Friday, having launched a similar shop in Shanghai in May. "Opportunities are expanding," chief operating officer Shuji Utsumi told AFP. "We've been struggling... for a while, but now we are coming back." The company aims "to expand our business globally rather than focusing on the Japanese market", he said. Sega was a top industry player in the 1980s and 1990s, its name synonymous with noisy arcades, home consoles and game franchises, such as beat-em-up "Streets of Rage" and ninja series "Shinobi". But it struggled to keep up with intense competition, falling on hard times financially as multiplayer online titles from US publishers, such as "World of Warcraft", took off in the 2000s. 'Persona' movie? After Sega quit the hardware business, its game offerings "got a little stale", said David Cole of the US-based games market research firm DFC Intelligence. But "the kids who grew up in the 1990s are now in their 30s, 40s, even older, and really like those franchises" -- and are introducing them to their own children -- he told AFP. "It's untapped value" that Sega -- just like its Japanese peers including Nintendo -- is trying to capitalise on through new movies, stores and theme park rides, Cole added. Last year, the film "Sonic the Hedgehog 3" starring Jim Carrey as the villain zipped to the top of the North American box office in one of the best December openings in years. It followed the first live-action "Sonic" movie in 2020, as Sega cashes in on a video-game movie craze that saw "The Super Mario Bros. Movie", based on the Nintendo characters, become the second-highest grossing film of 2023. "Shinobi" is also being turned into a film, while Sega's "Yakuza" game series has been adapted for television. When asked if cult franchise "Persona" could be next, Sega's Utsumi said fans should "stay tuned". "We are talking to a lot of interesting potential partners. So we are under some discussions, but I can't say too much about it," he said. Super Game Sega bought Finland's Rovio, creator of "Angry Birds", in 2023, seeking to expand into the mobile gaming market. "Gamers' behavior has been changing" since Sega's original heyday, going beyond TV-connected consoles, Utsumi said. But Cole said that in the long run Sega should concentrate on "high-end" gaming: larger-scale, more involved titles that encourage brand loyalty. Sega is working on what it calls a "Super Game" with big-budget international ambition and a scope that is "not only just a game -- communication, social, maybe potentially AI", Utsumi said. "The competition in the game market is very fierce," he cautioned. "It's important to really have a fan base close to us. But at the same time, when we develop a great game, it takes time." Sega's parent company Sega Sammy also makes arcade and gambling machines, including those used in Japanese "pachinko" parlors, whose numbers are in decline. That makes Sega's entertainment business "really the growth opportunity for the company", Cole said. Sega Sammy said in May its "Sonic" intellectual property "has contributed to an increase in both game and character licensing revenue". Young tourists in Tokyo shopping near Sega's new store ahead of the opening seemed to confirm this. "I've always liked Sega. I kind of grew up around their games," said 19-year-old American Danny Villasenor. "They're pretty retro. But I think they've evolved with time pretty well." William Harrington, 24, who lives in Los Angeles, said his father "put me on to a lot of the older games back in the day,"and so to him, Sega "feels like childhood". © 2025 AFP
Japan Today
04-06-2025
- Entertainment
- Japan Today
Nintendo fans stoked for Switch 2 'mega launch'
Nintendo hopes to match the success of the Switch when its levelled-up new console hits shelves Thursday, with strong early sales expected despite the gadget's high price By Katie Forster With shops planning midnight launch parties after a run on pre-orders, Nintendo releases the Switch 2 on Thursday, hoping to score record early sales for a games console. But the Japanese company has its work cut out to match the overall success of the Switch, which became a must-have during the pandemic with hit games such as "Animal Crossing". Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to its predecessor, which has sold 152 million units since it came out in 2017 -- making it the third best-selling console of all time. Serkan Toto from Tokyo consultancy Kantan Games said he "would not be surprised to see Switch 2 breaking sales records in the next weeks and months". In Japan, Nintendo's online store had 2.2 million pre-order applications for the Switch 2 -- an "insane number the industry has never seen before", Toto told AFP. "We are looking at some sort of mega launch, and it will be interesting to see for how long this initial momentum will continue," he added. Challenges for Nintendo include uncertainty over U.S. trade tariffs and whether it can convince enough people to pay the high price for its new device. The Switch 2 costs $449.99 in the United States, more than Switch's launch price of $299.99. Both are hybrid consoles which can connect to a TV or be played on the go. New Switch 2 games such as "Donkey Kong Bananza" and "Mario Kart World" -- which allows players to go exploring off-grid -- are also more expensive than existing Switch titles. Pre-order cancellations Retailers in the United States, Europe and other major markets are also gearing up for a rush of excited fans, with some stores opening at midnight to welcome them. "For us, this will be a record in terms of first-day sales for a games console," said Charlotte Massicault, director of multimedia and gaming at France's Fnac Darty. Supply pressures have even forced retailers to cancel orders, with Britain's Game saying it is "working hard to reinstate as many affected pre-orders as possible". "It seems that retailers in the US were especially confident in their ability to ship pre-orders and now need to deal with some serious backlash from customers," Toto said. He expects "it will be hard to get a Switch 2 not only at launch but for weeks and months after, possibly through the entire year," as was the case for months with the Switch. Nintendo forecasts it will shift 15 million Switch 2 consoles in the current financial year, roughly equal to the original in the same period after its release. The Switch 2 "is priced relatively high" compared to its predecessor, so it "will not be easy" to keep initial momentum going, the company's president Shuntaro Furukawa said at a financial results briefing in May. 'Super excited' The Switch 2 has eight times the memory of the first Switch, and its controllers, which attach with magnets, can also be used like a desktop computer mouse. New functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw for young audiences used to watching game streamers. "People were a bit shocked by the price of 'Mario Kart World', the first $80 game that we've ever seen," said Krysta Yang of the Nintendo-focused Kit & Krysta Podcast. But while the company is "going to have to do some work" to convince more casual gamers that it's worth upgrading, Nintendo fans are "super excited", she told AFP. In the United States, Nintendo delayed pre-orders for the Switch 2 by two weeks as it assessed the impact from President Donald Trump's aggressive duties on trading partners around the world. Furukawa said in May that "hardware for North America is mainly produced in Vietnam" where Trump is threatening a hefty so-called "reciprocal" levy of 46 percent. But tariff uncertainty could in fact push consumers to buy a Switch 2 sooner, because they are worried that the price could go up, according to Yang. And the stakes are high for Nintendo. While the "Super Mario" maker is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say. © 2025 AFP
Japan Today
01-06-2025
- Entertainment
- Japan Today
Nintendo aims to match Switch success with new console
Nintendo hopes to match the success of the Switch when its levelled-up new console hits shelves Thursday, with strong early sales expected despite the gadget's high price By Katie Forster and Kilian Fichou Nintendo hopes to match the runaway success of the Switch when its leveled-up new console hits shelves Thursday, with strong early sales expected despite the gadget's high price. Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to its predecessor, which has sold 152 million units since launching in 2017 -- making it the third best-selling video game console of all time. But despite buzz among fans and robust demand for pre-orders, headwinds for Nintendo include uncertainty over U.S. trade tariffs and whether enough people are willing to shell out. The Switch 2 "is priced relatively high" compared to the original device, company president Shuntaro Furukawa said at a financial results briefing in May. "So even if there is momentum around the launch, we know it will not be easy to keep that momentum going over the long term," he warned. Sales of the Switch, which can connect to a TV or be played on the go, were boosted by the popularity of games like "Animal Crossing" as a pandemic lockdown pastime. The Japanese company forecasts it will shift 15 million Switch 2 consoles in the current financial year, roughly equal to the original in the same period after its release. The new device costs $449.99 in the United States, over a third more than the Switch. A Japan-only version is cheaper, at 49,980 yen ($350). New Switch 2 games such as "Donkey Kong Bonanza" and "Mario Kart World" -- which allows players to go exploring off-grid -- are also more expensive than existing Switch titles. Most original Switch games can be played on the Switch 2, and some Switch blockbusters such as "Zelda: Breath of the Wild" will have enhanced editions released for the new incarnation. "People were a bit shocked by the price of 'Mario Kart World', the first $80 game that we've ever seen," said Krysta Yang of the Nintendo-focused Kit & Krysta Podcast. While the company is "going to have to do some work" to convince more casual gamers that it's worth upgrading, Nintendo fans are "super excited", she told AFP. The Switch 2 will have eight times the memory of the first Switch, and its controllers, which attach with magnets, can also be used like a desktop computer mouse. Although the new console is not radically different, "a lot of people (are) saying, 'this is what I wanted, I wanted a more powerful Switch -- don't mess with a good thing'," said Yang, a former Nintendo employee. New functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw, said David Gibson of MST Financial. "It's a way to appeal to an audience which has got used much more to the idea of streaming games and watching games, as well as playing games," he told AFP, predicting that the Switch 2 will break records in terms of early sales. And success is crucial for Nintendo. While the "Super Mario" maker is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say. Nintendo delayed pre-orders for the Switch 2 in the United States by two weeks as it assessed the impact from President Donald Trump's global assault on free trade. But its pre-orders have since sold out in the U.S. market and elsewhere, with the company boasting of particularly high demand in Japan. Furukawa said in May that Nintendo's financial projections are based on the assumption of U.S. tariffs of 10 percent on products produced in Japan, Vietnam, and Cambodia, and 145 percent on China. "Hardware for North America is mainly produced in Vietnam," he added. Trump's hefty so-called "reciprocal" tariff of 46 percent on goods from Vietnam is on pause, while those on China have been slashed. Tariff uncertainty could in fact push consumers to buy a Switch 2 sooner, because they are worried that the price could go up, Yang said. Charlotte Massicault, director of multimedia and gaming at the French retail giant Fnac Darty, told AFP that pre-sale demand has been "well above what we imagined". "For us, this will be a record in terms of first-day sales for a games console," she said. The Switch 2 is "less of a family-focused product, and more of a 'gamer' product" compared to the Switch, she said. "That's what Nintendo wanted, and it works." © 2025 AFP
