[Bloomberg] Microsoft Looks to Sony PlayStation Veteran Mena Kato To Boost Xbox in Japan

vixolus · Dec 12, 2023

This Former PlayStation Executive Says Japanese Video Games Need Xbox to Grow

Microsoft Corp. is betting that Mena Kato — a PlayStation veteran who grew up playing Nintendo classics like Donkey Kong — will help it finally drive a wedge into the world’s No. 3 gaming market.

www.bloomberg.com

Gift article link above
By Takashi Mochizuki and Yuki Furukawa

Kato helped build Sony Group Corp.'s console into a dominant presence in the games industry over two decades with PlayStation. Since July, she's taken on a far more daunting task: selling the Xbox to studios who swear by Sony and Nintendo Co. She's counting on her dealmaking skill, Microsoft's global reach and her own local connections to finally make the Xbox a relevant player.

"Japanese publishers will definitely need us in expanding their business," Kato said in an interview. "It would be difficult to do that just with the PlayStation."

The Xbox unit, led by Phil Spencer, has been stepping up its foray into the world's third-largest economy, with the executive in September saying players can expect top-tier Japanese titles as Xbox exclusives in the future. His company has lagged mainstays Sony and Nintendo, but Kato brings the local experience and connections that it has long coveted. The executive said she was approached by Microsoft several times before she finally agreed to join.

Kato doesn't expect negotiations with partners to be easy and anticipates there'll be plenty of adaptation required for Microsoft to increase its relevance in Japan's games industry.

"We face a challenge and that means there are still a lot of things we can and should change," she said.

More in the article. I used what I guess was the original headline (as seen via the tab name) rather than "This PlayStation Veteran Is Helping Make the Xbox Relevant in Japan" bc I feel like that would've just led to drive bys about sales figures rather than the meat of the subject which is Japanese developer support for the platform.

LightKiosk · Dec 12, 2023

"Japanese publishers will definitely need us in expanding their business," Kato said in an interview. "It would be difficult to do that just with the PlayStation."

I imagine a Switch 2 capable of running more 3rd party titles will do a great job for said publishers. Xbox will face an even steeper battle with that in mind so best of luck to Mena and team.

TripleBee · Dec 12, 2023

LightKiosk said:
I imagine a Switch 2 capable of running more 3rd party titles will do a great job for said publishers. Xbox will face an even steeper battle with that in mind so best of luck to Mena and team.

Though by the time the switch 2 comes out the consoles will probably be close to swapping to the next gen.

IonMagus · Dec 12, 2023

LightKiosk said:
I imagine a Switch 2 capable of running more 3rd party titles will do a great job for said publishers. Xbox will face an even steeper battle with that in mind so best of luck to Mena and team.

Switch 2, PC and the ever popular mobile phone, yeah. Traditional consoles dont really have a market in Japan anymore

PlanetSmasher · Dec 12, 2023

LightKiosk said:
I imagine a Switch 2 capable of running more 3rd party titles will do a great job for said publishers. Xbox will face an even steeper battle with that in mind so best of luck to Mena and team.

Yeah, it's going to be a steep uphill battle for them regardless of what executive is in charge over there, especially if the Switch 2 can run ports of PS5/Xbox games.

TripleBee said:
Though by the time the switch 2 comes out the consoles will probably be close to swapping to the next gen.

And by that point, Japanese publishers will start to focus on Switch 2-specific games for anything that doesn't NEED to be on the PS6. Like there really isn't anything they can do to make consumers in Japan start buying Xbox en masse. There simply is not that much desire for home consoles in general.

The PS5 is barely surviving as it is. There isn't room for two big expensive home consoles in the Japanese market with mobile, Switch and PC being what they are.

IonMagus · Dec 12, 2023

TripleBee said:
Though by the time the switch 2 comes out the consoles will probably be close to swapping to the next gen.

Switch 2 is 100% releasing next year

Toumari · Dec 12, 2023

Good luck.

Helix · Dec 12, 2023

goodluck.gif

John Frost · Dec 12, 2023

Good luck.

Super · Dec 12, 2023

I think I am missing something here. There is talks of Windows PC but surely it's easier to reach players on Steam than through the Windows Store / Game Pass? The Switch 2 will also be coming next year, I feel Japanese publishers will do everything to get ports of games on it.

platocplx · Dec 12, 2023

It seems to me more pubs would just launch on PC at this point.

Esp when you have analysts saying stuff like this:

Microsoft offers huge scalability to Japanese publishers as there's virtually no country without Windows PCs," UBS Securities analyst Kenji Fukuyama said. "When it comes to access to game fans in emerging countries, Sony and Nintendo just can't compete with Xbox."

Neoxon · Dec 12, 2023

TripleBee said:
Though by the time the switch 2 comes out the consoles will probably be close to swapping to the next gen.

The Switch 2 is reportedly coming next year.

Mcbel · Dec 12, 2023

"Microsoft offers huge scalability to Japanese publishers as there's virtually no country without Windows PCs," UBS Securities analyst Kenji Fukuyama said. "When it comes to access to game fans in emerging countries, Sony and Nintendo just can't compete with Xbox."

Bwahahahahahaha

NinjaScooter · Dec 12, 2023

it seems like we've reached a point where getting major third party Japanese support and having a console presence with Japanese consumers are two distinct things. Im not sure Xbox will every make much impact there but their goal seems to be (and should be) parity with Playstation and Switch when it comes to the major titles from companies like Square/Capcom/Sega/Atlus/Namco/ect....

With most of these Japanese companies wanting more and more for their big games to have a global reach it does make sense for them to support xbox, but similarly its probably just as important for Xbox to start making greater inroads places outside of the USA/UK. They need to grow all over the world moreso than they need to grow in Japan to keep these publishers interested is my guess.

--R · Dec 12, 2023

platocplx said:
It seems to me more pubs would just launch on PC at this point.

Esp when you have analysts saying stuff like this:

Straight up fanfiction considering how they've been treating every market that's not the UK or US, with absurd price hikes in Brazil or terrible localization efforts pretty much everywhere. Sometimes I wonder if some analysts live in the same reality as everyone else.

Deleted member 158819 · Dec 12, 2023

Regardless of the comment and the headline, seems like Xbox is indeed investing more in Japan and I'm sure there'll be some stuff that comes out of Mena Kato's work.

platocplx · Dec 12, 2023

NinjaScooter said:
it seems like we've reached a point where getting major third party Japanese support and having a console presence with Japanese consumers are two distinct things. Im not sure Xbox will every make much impact there but their goal seems to be (and should be) parity with Playstation and Switch when it comes to the major titles from companies like Square/Capcom/Sega/Atlus/Namco/ect....

With most of these Japanese companies wanting more and more for their big games to have a global reach it does make sense for them to support xbox, but similarly its probably just as important for Xbox to start making greater inroads places outside of the USA/UK. They need to grow all over the world moreso than they need to grow in Japan to keep these publishers interested is my guess.

To me is seems like microsofts gaming growth is going to come from pushing PC and the Cloud in most markets outside of The US and UK.

--R said:
Straight up fanfiction considering how they've been treating every market that's not the UK or US, with absurd price hikes in Brazil or terrible localization efforts pretty much everywhere. Sometimes I wonder if some analysts live in the same reality as everyone else.

Yeah im not sure how they came to that conclusion. There is a lot of conflation about global reach but then also local markets. But there are ton of localization issues that the only way MS gets inroads is by making localization way easier for pubs to do, which hasn't been the case with the Machine Translations they have been doing. I guess that's maybe where AI comes into play.

vixolus · Dec 12, 2023

--R said:
Straight up fanfiction considering how they've been treating every market that's not the UK or US, with absurd price hikes in Brazil or terrible localization efforts pretty much everywhere. Sometimes I wonder if some analysts live in the same reality as everyone else.

I think the analyst is conflating Xbox with Windows/PCs a bit. Like yeah, you can play games on Windows and the amount of PCs out there vastly out numbers consoles, but yeah.. not really the same thing. Really just a poor analyst take.

Super · Dec 12, 2023

NinjaScooter said:
it seems like we've reached a point where getting major third party Japanese support and having a console presence with Japanese consumers are two distinct things. Im not sure Xbox will every make much impact there but their goal seems to be (and should be) parity with Playstation and Switch when it comes to the major titles from companies like Square/Capcom/Sega/Atlus/Namco/ect....

With most of these Japanese companies wanting more and more for their big games to have a global reach it does make sense for them to support xbox, but similarly its probably just as important for Xbox to start making greater inroads places outside of the USA/UK. They need to grow all over the world moreso than they need to grow in Japan to keep these publishers interested is my guess.

Hell even the UK is 2:1 in 2023 and approaching the same figure LTD, so the Xbox console is losing ground even in it's strongest markets.

Dyno · Dec 12, 2023

NinjaScooter said:
it seems like we've reached a point where getting major third party Japanese support and having a console presence with Japanese consumers are two distinct things. Im not sure Xbox will every make much impact there but their goal seems to be (and should be) parity with Playstation and Switch when it comes to the major titles from companies like Square/Capcom/Sega/Atlus/Namco/ect....

With most of these Japanese companies wanting more and more for their big games to have a global reach it does make sense for them to support xbox, but similarly its probably just as important for Xbox to start making greater inroads places outside of the USA/UK. They need to grow all over the world moreso than they need to grow in Japan to keep these publishers interested is my guess.

Is Xbox even big in the UK anymore? During the 360 sure they seemed to be pretty common but now everyone I know is on PS5, PC and Switch

Deleted member 158819 · Dec 12, 2023

--R said:
Straight up fanfiction considering how they've been treating every market that's not the UK or US, with absurd price hikes in Brazil or terrible localization efforts pretty much everywhere. Sometimes I wonder if some analysts live in the same reality as everyone else.

Isn't her literal job an example of Xbox working to improve their efforts in the Japanese market?

Among her duties, Kato is having daily conversations with local game studios and ferrying feedback to Microsoft headquarters in Redmond, Washington, about topics as basic as developer documentation translation or as large-scale as global promotional campaigns to boost new titles.

christocolus · Dec 12, 2023

The Xbox unit, led by Phil Spencer, has been stepping up its foray into the world's third-largest economy, with the executive in September saying players can expect top-tier Japanese titles as Xbox exclusives in the future.

Phil and Satya already hinted at Japan and Asia being their next focus so it's a great effort to see them getting Mena on board. Now hopefully they start growing more relationships with 3P and building those Japanese exclusives one at a time. Japanese games now have an even wider base outside of Japan so hopefully MS focuses on some major strategic investments there .

Super · Dec 12, 2023

Paying for ports and Game Pass deals like they have at SEGA could make some inroads. Xbox have marketing for SEGA games now but doesn't seem to help the console in the country at all, it's more of a world wide play.

bitcloudrzr · Dec 12, 2023

When it comes to access to game fans in emerging countries, Sony and Nintendo just can't compete with Xbox.

Mcbel said:
Bwahahahahahaha

--R · Dec 12, 2023

Oso said:
Isn't her literal job an example of Xbox working to improve their efforts in the Japanese market?

Unrelated to what the analyst is saying. The analyst is treating Windows as Xbox, saying Nintendo and Sony can't compete with Xbox, while the efforts by other companies on PC, like Valve's, are being ignored. What that analyst is saying is just inaccurate at all levels, and unrelated to Kato's efforts in Japan.

Diablos · Dec 12, 2023

Something something I'm an expert

Seriously though, there have been so many articles over the years talking about the latest master plan from Microsoft to win over Japan.

Deleted member 158819 · Dec 12, 2023

--R said:
Unrelated to what the analyst is saying. The analyst is treating Windows as Xbox, saying Nintendo and Sony can't compete with Xbox, while the efforts by other companies on PC, like Valve's, are being ignored. What that analyst is saying is just inaccurate at all levels, and unrelated to Kato's efforts in Japan.

But it is relevant to your comment where you mention how they treat markets outside of US and UK. Seems like they are indeed investing and trying to improve in Japan.

Glasfrut · Dec 12, 2023

LightKiosk said:
I imagine a Switch 2 capable of running more 3rd party titles will do a great job for said publishers. Xbox will face an even steeper battle with that in mind so best of luck to Mena and team.

Yeah, this would be my immediate take.

--R · Dec 12, 2023

Oso said:
But it is relevant to your comment where you mention how they treat markets outside of US and UK. Seems like they are indeed investing and trying to improve in Japan.

We'll have to see the results for that as Kato works, because so far they care just as much as any other not US/UK market, and the brand's power on the country speaks for itself.

Deleted member 158819 · Dec 12, 2023

--R said:
We'll have to see the results for that as Kato works, because so far they care just as much as any other not US/UK market, and the brand's power on the country speaks for itself.

Oh I doubt that the brand power will ever improve much in the country, but getting Atlus games with Xbox marketing, FFXIV, deeper partnership with Square, and less games skipping Xbox seems like they're definitely working at least with developers even if it doesn't resonate much with the consumers there (which tbf Japanese software on PS isn't even doing the hottest, so that'll be an even steeper mountain to climb).

Abrasion Test · Dec 12, 2023

Neoxon said:
The Switch 2 is reportedly coming next year.

I wouldn't expect most AAA publishers to even turn around ports of most of their lineup until 2026. Just because it can run these games (a big IF), doesn't mean they will be up and running on day 1 to provide support. Most publishers will give the standard reasons of wanting to wait for the install base to grow. Others are going to be stressed enough trying to hit their release dates on PS/Xbox/PC within their fiscal quarters that disrupting their current pipeline to add an potentially unproven platform might not make much sense.

Switch 2 will mostly be a day one target for publishers that work very closely with Nintendo on specific titles like Square, and lower spec titles.

Dust · Dec 12, 2023

Good luck, seriously.
Outside just blasting money left and right for ports and Game Pass deals, I see no strategy going forward. Well, that and massive JP acquisitions.

FF Seraphim · Dec 12, 2023

Man MS you need more than just people you need something that appeals to the audience. Promote your portable cloud gaming.

Nolbertos · Dec 12, 2023

Who was the Xbox Japan Chief before Mena Kato?? Also, she has a huge uphill battle. I mean PS in hardware is hardly moving the needle in Japan. Software wise, I guess they are OK. Don't know what digital software sales were for Xbox historically but I doubt that would sway more Japanese publishers without the moneyhatting.

BringBackSonics · Dec 12, 2023

More support is always a good thing.

Scottoest · Dec 12, 2023

Don't know who this is or what it means for Xbox, but glad to hear it seems to at least signal they're putting in the work this time instead of putting out a couple of JRPGs then calling it a day when they didn't do the trick.

Glasfrut · Dec 12, 2023

Abrasion Test said:
Switch 2 will mostly be a day one target for publishers that work very closely with Nintendo on specific titles like Square, and lower spec titles.

I feel Switch 2 will be day one with a lot of the publishers that Xbox has been trying to court recently (Sega, Square, Namco/Bandai).

Renna Hazel · Dec 12, 2023

She can absolutely use the global sales of Xbox to make game development more enticing to Japanese publishers, and then use that to promote Xbox more so in Japan.

Lightjolly · Dec 12, 2023

They must know something we don't

vixolus · Dec 12, 2023

Nolbertos said:
Who was the Xbox Japan Chief before Mena Kato?? Also, she has a huge uphill battle. I mean PS in hardware is hardly moving the needle in Japan. Software wise, I guess they are OK. Don't know what digital software sales were for Xbox historically but I doubt that would sway more Japanese publishers without the moneyhatting.

Don't think there was one.

https://www.linkedin.com/in/normancheuk/

Norman has been in his role since only Jule 2022 as GM of Asia Partnerships and Expansion and posted that role search for Mena's job title about a year or so ago. Recently posted for something similar but for China.

SilentEagle · Dec 12, 2023

They need to find new Itagaki and Sakaguchi.

TitanicFall · Dec 12, 2023

Would need to be a handheld to get any real traction.

Deleted member 14089 · Dec 12, 2023

Hmmmm.

Kato doesn't expect negotiations with partners to be easy and anticipates there'll be plenty of adaptation required for Microsoft to increase its relevance in Japan's games industry.
"We face a challenge and that means there are still a lot of things we can and should change," she said.

Facts.

I have no idea on how they'll approach the boost in local presence, but from a global aspect I hope they can convince more publishers to not neglect the platform with releases.

One thing I think they can approach short term w.r.t. the brand and gaming is an explicit streaming only gamepass with a reduced cost, but there's no native iPhone app and although the google pixel is on the rise it's still not as relevant. Don't believe at all that anyone views Windows with a positive image 😅 . Their own xbox app is not that good..
I like that due to B.C., microsoft has been able to retain certain titles, which cannot be experienced that easily on modern consoles (e.g. Sonic Unleashed, FFXIII, Otogi), but that's likely not a strong proposition for the Japanese market.

I hope she can bring the necessary change!

pswii60 · Dec 12, 2023

Dyno said:
Is Xbox even big in the UK anymore? During the 360 sure they seemed to be pretty common but now everyone I know is on PS5, PC and Switch

The 360 even outsold the Wii in the UK. It was huge. Xbox is still pretty big with millennials in the UK due to exactly that, but the younger generations significantly lean PS5/Switch. I'm the only PC gamer I know in the UK IRL lol.

sir_crocodile · Dec 12, 2023

Bit confused, the article in the OP suggests that Kato was at Sony for over 20 years which would be very impressive as a chunk of that time would have been during the PS2 and perhaps PS1 glory days when Sony's publishing organisation in Japan was absolutely incredible.

But other sites suggest Kato was there 8 years and at least for some of that time was at the mobile business branch:

Former Sony executive joins Xbox to lead Japanese partnership operations

Mena Sato Kato was previously the Vice President of Mobile Business for Sony.

www.windowscentral.com

Which while it doesn't mean Kato wouldn't be great at the job, it's not nearly as impressive sounding as the bloomberg article. Which one is right?

Deleted member 14089 · Dec 12, 2023

TitanicFall said:
Would need to be a handheld to get any real traction.

ROG Ally and Lenovo Legion Go is their angle for that, but a Series S handheld when it becomes technically feasible would likely get outpaced by the next switch.

Deleted member 158819 · Dec 12, 2023

sir_crocodile said:
Bit confused, the article in the OP suggests that Kato was at Sony for over 20 years which would be very impressive as a chunk of that time would have been during the PS2 and perhaps PS1 glory days when Sony's publishing organisation in Japan was absolutely incredible.

But other sites suggest Kato was there 8 years and at least for some of that time was at the mobile business branch:

Former Sony executive joins Xbox to lead Japanese partnership operations

Mena Sato Kato was previously the Vice President of Mobile Business for Sony.

www.windowscentral.com

Which while it doesn't mean Kato wouldn't be great at the job, it's not nearly as impressive sounding as the bloomberg article. Which one is right?

Bloomberg might not be saying she worked there for two decades, wording is weird and seems to be saying that she played a part in making PlayStation dominant over two decades (that PlayStation has existed).

Deluxera · Dec 12, 2023

Is Xbox missing that many Japanese stuff nowadays ? It was pretty bad during the PS4 generation but things feel much more balanced now.

As others have suggested, in the short term I expect Nintendo to pick up Japanese exclusives left and right for the Switch successor, making everyone else's job difficult. It may even explain why Sony has been looking for partners in China, Korea and even India recently.

Gun · Dec 12, 2023

sir_crocodile said:
Bit confused, the article in the OP suggests that Kato was at Sony for over 20 years which would be very impressive as a chunk of that time would have been during the PS2 and perhaps PS1 glory days when Sony's publishing organisation in Japan was absolutely incredible.

But other sites suggest Kato was there 8 years and at least for some of that time was at the mobile business branch:

Former Sony executive joins Xbox to lead Japanese partnership operations

Mena Sato Kato was previously the Vice President of Mobile Business for Sony.

www.windowscentral.com

Which while it doesn't mean Kato wouldn't be great at the job, it's not nearly as impressive sounding as the bloomberg article. Which one is right?

Mena Sato Kato - マイクロソフト | LinkedIn

Accomplished executive leader with expertise in business development, global initiatives… · Experience: マイクロソフト · Education: 国際基督教大学 · Location: Tokyo · 500+ connections on LinkedIn. View Mena Sato Kato’s profile on LinkedIn, a professional community of 1 billion members.

www.linkedin.com

She was at Sony from 99 to 2020

sir_crocodile · Dec 12, 2023

Gun said:
Mena Sato Kato - マイクロソフト | LinkedIn

Accomplished executive leader with expertise in business development, global initiatives… · Experience: マイクロソフト · Education: 国際基督教大学 · Location: Tokyo · 500+ connections on LinkedIn. View Mena Sato Kato’s profile on LinkedIn, a professional community of 1 billion members.

www.linkedin.com

She was at Sony from 99 to 2020

Thanks! So the sites saying 8 years are wrong. Could be a great hire for microsoft.

[Bloomberg] Microsoft Looks to Sony PlayStation Veteran Mena Kato To Boost Xbox in Japan

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