Analysis of Japan's Video Gaming Industry: Economic Implications

The emphasis of this study is to analyze the video gaming industry in general. However, particular emphasis is to be on Japan as it is among the economies which rely on this given industry. In the modern age, the video game industry (commonly referred to as the gaming industry) is defined as the economic sector that encompasses marketing, development, as well as monetization of video games. As it stands, Japan is the country whose revenue generation from the sector is approximated at $14 million on an annual basis. Therefore, the nation not only garners high revenue income from the gaming industry but also has a massive market base. While there are many reasons which explain why Japan has experienced such success in this field, the main reason can be explained by its multi-million dollar companies that have been at the forefront of expanding the sector. Such companies include Sega, Nintendo Co., Ltd. as well as PlayStation (Dell'Era, Altuna, Magistretti, & Verganti, 2017). To be able to analyze management practices that enhance the success of this nation in the industry, it follows that one of the exemplary companies has to be identified and another that is marred by many incidences. The exemplary company, in this case, is Nintendo Co., Ltd., while the poorly managed company is Capcom Co., Ltd (Goldberg, Lee, & Pulos, 2016). These two companies are compared to showcase the best-management practices adopted by Nintendo Co., Ltd. hence its success while the poor management decisions by Capcom Co., Ltd. hence its failure.

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Nintendo Co., Ltd.

The multinational consumer electronics has its headquarters in Kyoto. Located in Japan, the institution has its operations in the nation as well as other parts of the world (Sargent, Kreiselman, & Peters, 2019). In terms of market capitalization, it has created the best video-game franchises, one of which is Mario.

Capcom Co., Ltd.

On the other hand, this company is also based in Japan and has its headquarters in Hepburn. The institution that develops video games has created a series of franchises such as Street Fighter (Dell'Era, Altuna, Magistretti, & Verganti, 2017). Developed in 1979, the company has had its fair share of success despite the recent backlash on its management practices that have brought about as a lot of issues and incidences affecting their revenue generation.

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