Market Trends of Japan Gaming Headset Industry
Rising Internet Penetration and Emergence of Cloud Gaming Platforms
- Rising internet penetration and the affordability of smartphones, both in urban and rural areas, have propelled significant growth in the online gaming market. Revenue streams in this sector include in-app purchases, pay-per-download, subscription services, and various forms of advertising. In 2023, Japan's Ministry of Internal Affairs and Communications noted that 86.2% of the population were internet users, a slight increase from the previous year.
- With the expanding internet penetration, major tech companies are increasingly investing in online gaming, further boosting the market. For example, in July 2024, Balenciaga partnered with Tencent's 'Need for Speed Mobile' game, following its collaboration with Alipay. This collaboration, which has been in the works for over 500 days, offered exclusive in-game items and allowed fans to purchase physical merchandise at selected outlets, on balenciaga.cn, and through its WeChat Mini Program.
- Today, the gaming market has transformed significantly from a decade ago, mainly due to globalization, digitalization, and the surge in mobile gaming. Mobile gaming, in particular, has broadened the industry's global reach and expanded the player base.
- The rising number of mobile data users is expected to lead to a fivefold surge in data consumption. A survey in February 2023 by the Mobile Society Research Institute highlighted that 93% of smartphone owners in Japan used their devices daily, with only 3% reporting weekly or less usage.
- Despite the market's high potential, challenges persist, such as limited local game development and the monetization of gamers. The internet ecosystem has begun a course correction, emphasizing end-to-end local game development.
Understand The Key Trends Shaping This Market
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Wireless Gaming Headset Segment to Hold Significant Market Share
- Wireless gaming headsets offer greater convenience and mobility compared to wired headsets. Gamers in Japan can move freely without being restricted by wires, allowing for a more immersive and comfortable gaming experience.
- The popularity of mobile gaming in Japan is on the rise, and wireless gaming headsets are well-suited for mobile gaming platforms. They provide a seamless connection to smartphones or tablets, enabling gamers to enjoy their favorite games on the go. For instance, according to AppMagic, with more than 5.7 million downloads, 'Royal Match' was the leading mobile gaming app in Japan in 2023. The puzzle game was published by Dream Games, Ltd. in 2021. Other games that recorded a high number of downloads in 2023 included 'Survivor!.io,,' 'Watermelon Game,' and 'Block Blast!'.
- Wireless gaming headsets have significantly improved in terms of audio quality, latency, and connection stability. Advancements in wireless technology, such as Bluetooth and wireless USB dongles, have made wireless headsets a viable and reliable option for gamers in Japan. For instance, in January 2024, Shiftall Inc. announced three new products: the 'MeganeX Superlight,' an ultra-lightweight VR headset; the 'HaritoraX Wireless R,' a full-body tracking device for the Metaverse; and the 'Mutalk 2,' a wireless soundproof microphone compatible with both PCs and smartphones.
- Japan has a thriving eSports scene, with many professional gamers and competitive gaming events. Wireless gaming headsets make movement easier for professional gamers during intense gameplay, giving them an edge in competitive gaming environments. For instance, the Japan eSports Union (JeSU) reported that 311 players held a Japan eSports Pro License as of November 2023. In contrast, Junior and Team Licenses were significantly fewer in number.
- With the increasing emphasis on lifestyle and portability in Japan, wireless gaming headsets align with the preferences of gamers who value convenience and minimalistic setups. Wireless headsets fit well into the modern lifestyle of urban gamers.
