Despite Xbox’s global reputation hitting a recent low, its momentum in Japan—historically a challenging market—has shown unexpected growth.

In a recent Famitsu interview during Kojima Productions’ Beyond the Strand anniversary event, Microsoft Gaming’s Phil Spencer discussed Xbox’s progress in the region.

Over the past year, engagement across Xbox platforms—console, PC, and cloud—has risen by approximately 20%. Spencer noted that while console usage remains steady, the surge is driven largely by Japan’s expanding PC gaming sector.

To solidify this growth, Microsoft aims to collaborate with more local partners while deepening ties with established studios like CAPCOM, SEGA, Square Enix, Bandai Namco, and Konami. Spencer emphasized plans to deliver tailored content for Japanese audiences.

Regarding hardware, Spencer reaffirmed that a next-gen Xbox is in development. Though specifics were scarce, initiatives like the ROG Xbox Ally highlight Microsoft’s strategy to unify gaming experiences across devices.

This Japan-focused push aligns with upcoming releases such as Forza Horizon 6, set in Japan, and the revival of Ninja Gaiden 4. The efforts may also rejuvenate other dormant franchises in the region, signaling Xbox’s commitment to capturing a larger share of the market.

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