May 12, 2008
Entertainment Create Fortunes in Japan, Will it last?
Analysis of:
Nintendo Wii makes Yamauchi Japan's richest: Forbes | www.reuters.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: - Gaming and entertainment is big business in Japan these days as a number of gaming and social networking related entrepreneurs ranked by Forbes, as the richest in Japan based on the value of their companies. The list includes founders of Nintendo, Pachinko gambling machine maker Sankyo, and new comer creator of Mixi social networking site. - Number one on the list is Nintendo's former CEO and a major shareholder (105 of total), Hiroshi Yamauchi, whose fortune have been tripled as a result of run away success of Nintendo Wii - Numebr 3 is another gaming/gambling pioneer, Kunio Busijima, founder of pachinko gambling machine maker Sankyo - The newest arrivalis Kenji Kasahara, founder of social networking site Mixi
Analysis: Japanese entrepreneurs success have always been based on creating products with markets first in Japan and then abroad. Therefore it is not surprising that with large penteration of 'gaming consoles and internet social interaction in Japan (highest per capita in the world on both counts), gaming tycoons top the Forbes list. Pachinko, while not widespread outside Japan (yet) is also very popular. The question is that whether these are lasting fortunes.
Given the continued popularity of Wii and the string of games planned and published, especially those based on Nintendo's own franchises such as Zelda and Mario Bros, the answer is a resounding yes in this case. In case of Mixi, rumors are that there are multiple suiters for the company, which should make Mr. Kasahara even richer pretty soon. As for Sankyo, Pachinko is spreading in Asia, where discresionary income are rising and attitude towards gambling is positive.
Analysis: Japanese entrepreneurs success have always been based on creating products with markets first in Japan and then abroad. Therefore it is not surprising that with large penteration of 'gaming consoles and internet social interaction in Japan (highest per capita in the world on both counts), gaming tycoons top the Forbes list. Pachinko, while not widespread outside Japan (yet) is also very popular. The question is that whether these are lasting fortunes.
Given the continued popularity of Wii and the string of games planned and published, especially those based on Nintendo's own franchises such as Zelda and Mario Bros, the answer is a resounding yes in this case. In case of Mixi, rumors are that there are multiple suiters for the company, which should make Mr. Kasahara even richer pretty soon. As for Sankyo, Pachinko is spreading in Asia, where discresionary income are rising and attitude towards gambling is positive.
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