Japanese mobile gaming in major decline as developers return to console games

The apparent decline of the mobile market in Japan could see the country’s games industry renew its interest in console games.

Despite being looked down upon by many hardcore gamers, mobile apps are by far the most popular way to play video games across the world. Just last year, a report showed mobile was the most dominant platform in the US and it’s even more prevalent in other countries.

And yet, much like live service games on console and PC, the market has become so saturated that many mobile games are eventually forced to shut down. Even popular ones like The Simpsons: Tapped Out have been sunsetted and rendered unplayable.

Now, there are serious concerns coming out of Japan that its mobile industry is weakening under the strain of there being so many mobile gacha games (apps where you spend real or in-game currency to buy random content like new characters or weapons), forcing many developers out of the games industry entirely.

One such developer, known only as suemaru on X, was prompted to share their fears in the wake of Square Enix’s decision to shut down two of its mobile gacha games – Final Fantasy Brave Exvius and Dragon Quest Of The Stars – both of which launched in Japan a decade ago.

Apparently, Square Enix figured the games weren’t making enough money any more, to justify continued support, and while this is nothing new for the industry, suemaru (in a post translated by Automaton) believes this is further proof that the mobile games market has become over-stuffed, particularly in regards to gacha games.

‘As someone active in the industry, I once again feel that gacha games are becoming like the Titanic,’ they wrote, ‘Staying in this industry means clinging to one of the limited spots on a sinking ship. I don’t think all of it will go under, but the number of seats that can stay afloat will keep shrinking.’

They added: ‘Even if I continue as a gacha game director, I won’t see my income grow. I also don’t know how long I’ll even have my ‘seat’ for.’

Another developer and creator of Indie-us Games, alwei on X, followed up on this with similar concerns, saying, ‘It’s already so hard to get off [the sinking ship], and yet the industry is clearly in a decline.’

They added that developers who’ve only ever worked on mobile games are struggling to make the jump to console game development, since the skillset isn’t that similar.

The implication is that console gaming could be on the rise again in Japan, which will certainly be good news for those frustrated that so many Japanese companies, including major publishers, spend their time and resources on mobile titles.

We won’t pretend to be shedding any tears over the decline of gacha games, not least given how exploitative they can be (there’s a reason they’re often criticised as a form of gambling), but of course there’s still a tangible human cost, with many developers likely to lose their jobs.

There’s currently no telling what sort of impact this could have on the Western mobile market, but it’s possible that gacha games, particularly high budget ones, could become less commonplace, both in Japan and the West.

Interestingly, a similar situation has already been brewing in China for a while. Last year, when we spoke with Kris Kwok, executive producer on Mecha Break – a live service multiplayer game for consoles and PC – he explained how the Chinese mobile market ‘bottlenecked’ years ago.

‘Although the mobile game market is still the majority companies are no longer as optimistic about it as they were,’ Kwok said at the time, which is why we’re seeing a surge in Chinese made console and PC games designed to appeal to a broader audience, like Black Myth: Wukong.

It would be almost impossible for any console game to be as profitable as a mobile gacha game – which is, of course, why so many get made – so it’s an indication of just how bad things have got that developers now see console development as a viable alternative.

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