Xbox Is Doing Better in Japan Thanks to Growing Importance of PC, Phil Spencer Says

Despite the brand’s historically weak performance in Japan, Xbox is showing signs of growth in the region, according to Microsoft Gaming CEO Phil Spencer. Speaking with Japanese publication Famitsu during the Beyond the Strand event celebrating Kojima Productions’ 10th anniversary, Spencer revealed that Xbox’s ecosystem is gaining more traction in Japan, largely due to the rising influence of the PC gaming market.

Spencer explained that total playtime across the Xbox ecosystem in Japan has increased by approximately 20% over the past year. While he did not disclose specific player or sales numbers, he noted that this growth is distributed across console, PC, and cloud platforms, emphasizing that PC gaming is playing an increasingly pivotal role in Japan’s gaming habits.

To build on this progress, Microsoft is working to expand its content offerings for Japanese players. Spencer confirmed that Xbox is actively engaging with several Japanese partners while continuing to strengthen collaborations with major studios such as CAPCOM, Square Enix, SEGA, Bandai Namco Entertainment, and Konami. This focus aligns with Microsoft’s ongoing efforts to ensure that Japanese-developed titles are better represented within the Xbox ecosystem.

When asked about Xbox’s hardware plans, Spencer reiterated the company’s commitment to future consoles, though he offered no concrete details. His comments follow the recent launch of the ROG Ally Xbox Edition, a portable gaming PC co-branded with Xbox, which many view as part of Microsoft’s strategy to connect multiple devices under the unified Xbox platform.

Xbox’s growing interest in Japan also extends to game localization and region-focused releases. The upcoming Forza Horizon 6, set in Japan, is a clear signal of this shift, while Microsoft’s support for new Japanese-developed titles, such as the long-awaited Ninja Gaiden 4, highlights the company’s intention to regain trust among Japanese players.

Although Xbox still faces a long road ahead in Japan, Spencer’s comments suggest that Microsoft’s focus on PC integration and local partnerships is beginning to pay off. The company’s renewed strategy could help revive several classic Japanese franchises and finally make Xbox a more relevant platform in the region.

Do you think Xbox’s emphasis on PC and local development will help them win over Japanese gamers this time? Share your thoughts below.