Land of the falling sales

It's been a tough year for the Japanese games market. Sales are down and the country's successful development sector is falling behind its Western rivals. Christopher Dring takes a closer look…

Long seen as the home of the video games industry, Japan has hit troubled times over recent years.

Software and hardware sales have spiralled downwards, with the latest data from Famitsu showing a 10.5 per cent drop in sales for the first half of Japan's 2009 fiscal year (April to September). A result driven by falling sales of Sony's PSP and Nintendo's Wii console.

"The current situation of Wii cannot be defined as healthy," said Nintendo president Satoru Iwata to investors last month.

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