Recently, Sony Corp (ADR) (NYSE:SNE) relocated its operation base for PlayStation to San Mateo, California from Japan. According to Sony, this move is strategic for growth while also not writing off Japanese market. Sony shipped around 2 million PS4 in Japan while it shipped over 30 million PS4 globally. The number might seem to imply something, but the relocation is more than just basic unit and software sale.
The Japanese market has always seemed to fall behind their western counterparts, but this has not limited their effect on global gaming trends. Japanese games usually sell globally, and studios have been firing for console development since PS4 was launched. Western approach to gameplay has never managed to break through into the gaming fan base in Asia making Japanese games some of the favorite within the region.
The best way of understanding Sony’s move is to note that the industry has gone global, and Sony is trying to unify their backends to help this move. Moving the base operation is a good idea in terms of time zone perspective and administrative aspects of bringing games to the market.
Most regions had their different requirements when a game was being introduced into their market. Most of the certification had different guidelines and this often conflicted. This resulted in a suitably arduous process when it came to productions of games. Sony has for a long period been trying to unify this and make the process less awkward. The move to California will most definitely help ease the situation.
Japanese game industry will remain competitive due to the quality and high numbers of games being developed. Considering domestic sale of PS4 in Japan has never been a good metric of the Japanese industry overall influence. How games have sold globally and creativity in designing of these games has been the primary drive.
Sony’s move to relocate their base operation for PlayStation has been long overdue and logically smart. They will still need creative output of Japanese developers as this is their main strong point of leverage over Microsoft Corporation (NASDAQ: MSFT)’s Xbox