The blockchain games shifted the perspective of developers and players globally. Discover how Japan is making a comeback in the video gaming industry with blockchain technology.
In recent years, Japan has come forward as a bedrock for innovation in the gaming industry. The integration of blockchain technology and games took the world by storm. However, this shift unleashed several opportunities in Japan’s gaming world.
The country is known for creating gaming giants Nintendo, Capcom and Sega. A hub for the video gaming industry, once overshadowed by US based developers who created Grand Theft Auto and Fortnite is now rising again. Despite facing a setback in the gaming industry, Japan is now at the forefront of making its strong presence in the blockchain gaming market. The Japan’s dominance in the blockchain gaming industry stands on four pillars:
- Unique cultural history of gaming
- Supportive & forward thinking government
- Video Game Pioneers
- Robust blockchain gaming ecosystem
In this article, we will learn about the trends, players, and future projections of the blockchain gaming sector in Japan.
Evolution Of Blockchain Games In Japan : 2021 Till Now
Japan has a rich history of creating video games, which provides a strong infrastructure for blockchain games. The games backed by blockchain technology offer a play-to-earn model where players can own in-game assets and can exchange them for fiat currency as well. The blockchain games ecosystem in Japan is making continuous progress. The private sector plays an important role behind it.
The Start Of Japan’s Blockchain Game Industry And Its Current Size
My Crypto Heroes by double jump.tokyo is Japan’s first game built on blockchain launched in 2018. The game quickly became a worldwide sensation and secured first place by its trade volume and daily active users.
As of 18 March 2024, Binance stated the price of My Crypto Heroes as $ 0.105024 per (MCHC / USD) with a current market cap of $ 2.87M USD. 24-hour trading volume was $ 531,801.10 USD. Binance updated MCHC to USD price in real-time. In the last 24 hours the crypto game has a circulating supply of 27.36 millions.
After My Crypto Heroes, Japanese developers never turned back. It proved to be the stepping stone for Japanese game developers. The market size of the Japanese blockchain gaming sector keeps on expanding.
According to IMARC, Japan blockchain gaming market size projects a growth rate (CAGR) of 62.19% during 2024-2032. The primary reason for market growth is strategic collaborations among major stakeholders and the rising technological innovations.
Upcoming Trends In Japan’s Blockchain Gaming Sector
The Japan Blockchain gaming market is going through significant changes. Stakeholders now realize the transparency and security offered by blockchain technology. According to IMARC, Japan’s blockchain gaming market is expected to follow the following trends:
- Non-Fungible Tokens
- Decentralization
- Play-To-Earn Model
Driving Forces Behind Market Growth
Japan aims to become the number one hub for blockchain games in the world.
Japan is at the forefront of the play-to-earn gaming market and here are the few driving forces behind its market growth.
Unique cultural history of gaming
- Unique cultural history of gaming
Japan’s rich background of innovations especially in the gaming sector is a main driving force behind its success in the blockchain gaming industry. If we go back in time, the country bears credit for developing games like Pokémon and Tamagotchi. These games align with the principles of blockchain games.
The union of Bandai Namco Research Institute and OASYX Series 2 is a perfect example that uses NFTs to recreate the experience of raising a virtual pet from egg to maturity on the blockchain.
- Supportive & forward thinking government
The Japanese government is fully supporting its blockchain games developers. Over 10,000 stakeholders attended the WebX conference 2023 in Tokyo. Prime Minister Fumio Kishida attended the conference as a keynote speaker, stressing on blockchain’s role in shaping a new, digital economy. Masaki Taira, leading Japan’s web3 development efforts, highlighted gaming as a pivotal growth driver for the industry.
- Video Game Pioneers
The video game giants in the market such as Sega (Battle of Three Kingdoms), Bandai Namco (RYUZO), Square Enix (Symbiogenesis), Konami (Project Zircon), and Ubisoft (Champions Tactics), have joined the blockchain world. These are the companies that formed partnerships with blockchain builders.
Impact Of Japanese Blockchain Gaming Industry
Japan comes up as the global leader of Blockchain gaming. The country constantly works on maintaining its economic power, technological innovations, and regulatory adaptations. Moving forward, we will discuss how Japan’s blockchain gaming industry impacts on its economic growth, innovations and development, and the regulatory challenges.
- Economic Growth
Japan’s gaming industry is flourishing despite a global surge in gaming industry. Thus the growth of the blockchain gaming market in Japan will attract investment. The inflow of capital will help stimulate economic activity such as supporting and establishing startups and fostering cutting-edge innovations.
- Innovations & Technology
The integration of gaming and blockchain technology has changed the gaming industry, taking it to new heights of innovation and profitability. The gaming industry has undergone huge transformation with digital coins taking center stage. The practical implication of decentralization in blockchain gaming enabled players to earn in-game assets. Players can exchange their in-game assets (NFTs) into fiat currency.
- Government Regulations
In recent news, the Japanese blockchain gaming community is seeking to capture a significant share of the $44 billion gaming market. To achieve this goal, developers reached out to the Liberal Democratic Party (LDP) to discuss increased liquidity of Web3 games. According to Ryo Matsubara, Director Web3 Game Studio Oasys addressed the issue of market liquidity in the local crypto market.
These steps prove to be the turning point for the blockchain gaming industry trajectory going upwards. You may read the full story here.
Global Blockchain Gaming Market
Global market for blockchain gaming may differ in terms of its size and volume however the core challenges are the same. Let’s see how the global market embraces blockchain gaming.
Global Market Size Of Blockchain Technology
According to a report issued by technavio, the global blockchain gaming market size is likely to increase by USD 43,458.37 million, at a CAGR of 58.51% between 2023 and 2028. However, the growth rate of the market depends on several factors such as:
- The rise of professional gaming,
- Using enhanced security and anti-cheating measures in blockchain gaming
- Increased demand for smart contracts and
- Automated transactions.
Global Regulations
Global regulations for cryptocurrency or particularly blockchain games vary from country to country. However, no proper legislation has been curated as of yet. Nonetheless, there are certain rules and regulations to govern the operations under the realm of blockchain.
Future Prospects And Challenges
As the Japanese market of blockchain games expands, it faces few challenges such as scalability and regulatory system. Japan has strict regulations when it comes to violence in blockchain games or any online game. Hence,the developers may need to be extra vigilant while developing the games.
Besides this, the Japanese government is all arms open to embrace blockchain technology in the gaming industry. It is the third largest hub of video games and ground to some of the most known developers in the industry. The unique gaming culture fits neatly with blockchain practical implications. Thus it combines well with its capacity to innovate and embrace new technologies.
Starting up your blockchain game business in the Japanese market can be a complex process. However, with the right knowledge and expertise, and media partnership, you can avail the valuable opportunity for growth.
NFTStudio24: Raising The Bars High For Blockchain Game Businesses
When it comes to collaborating with businesses having similar goals, NFTStudio24 is all ears. NFTStudio24 is a decentralized digital media built on blockchain. To grow in the blockchain gaming business, you need a strong media presence. Through NFTStudio24, you can build strong media appearances for your products, games, and team, and regularly engage with your community.
To promote your business we can plan on how to send progress updates to people, achievements, podcasts, interviews and articles.NFTStudio24 can help you create a strategic plan that caters to your needs. Our media services are remarkable and we have been successfully providing customized plans.
