Korean and Chinese firms dominate Japan’s gaming subculture scene

“Blue Archive” [Courtesy of Nexon Games]

In Japan, a fierce battle is unfolding in the heart of the gaming subculture market where Korean and Chinese gaming companies are taking center stage. The iconic battleground for this competition is Tokyo’s Akihabara, Japan’s largest electronics and gaming district. Here, prominent advertisements and storefronts are now adorned with advertisements for well-known Korean and Chinese games.

Akihabara Station, often referred to as the starting point for Akihabara tours, saw Nexon Games’ “Blue Archive” take up a large advertising board at the station entrance. Meanwhile, the central crossroads of Akihabara featured a series of billboards promoting China’s HoYoverse’s popular game, “Genshin Impact.”

Gaming subcultures typically feature cute anime-style girls as their main characters, and while they used to cater to specific niche audiences, they have become one of the most popular game genres in East Asia in recent years.

According to sources on Sunday, “Blue Archive,” developed by Korean company Nexon Games, is enjoying success on the Japanese gaming charts. The game title is the first home-developed intellectual property (IP) to achieve success in the Japanese market. Since its release in Japan in February 2021, it has continued to captivate a dedicated Japanese user base, recently regaining the top position in Apple App Store’s revenue ranking after three months in Japan. It has claimed the top spot four times in 2023 alone and continues to maintain its place in the upper echelons of the rankings.

While Nexon Games has not disclosed the cumulative sales figures for “Blue Archive” in Japan, industry insiders estimate that it has generated sales approaching 500 billion won ($381 million) since its Japanese launch.

China’s leading gaming company, HoYoverse, is actively targeting the Japanese market with titles including “Genshin Impact” and “Honkai: Star Rail.” “Genshin Impact” stands out as a subculture game that has become a global mega-hit and steady seller, not just in Japan but worldwide. Since its release in September 2020, the game’s global cumulative revenue has exceeded 7 trillion won. In terms of “Genshin Impact” sales, Japan is in second place with 23.3 percent behind China at 34.3 percent. The United States (16.5 percent) and Korea (6.2 percent) are in third and fourth place respectively. Japan ranks as the world’s third-largest mobile gaming market, and its revenue per download (RPD) in the mobile game market is the highest in the world at $21, surpassing the United States at $5, China at $14, and Korea at $10.