CENTER COLUMBIA BUSINESS ON JAPANESE SCHOOL ECONOMY & BUSINESS POKEMANIA: SECRETS BEHIND THE INTERNATIONAL PHENOMENON FEBRUARY 7, 2000 Pikachu, Bulbasaur, Meowth... Puzzled by Pokemon and the international buzz it has created? On February 7, 2000, the Center on Japanese Economy and Business, the Donald Keene Center of Japanese Culture, and the East Asian Institute of Columbia University, together with the support of the Consulate General of Japan in New York, hosted a panel discussion featuring the creators and packagers of Pokemon. The program included a multimedia demonstration on the development and international marketing of the elec- tronic games, trading cards, films, toys, videos, and myriad tie-ins that have attracted children all over the world. Featured speakers included Tsunekazu Ishihara, President, Creatures, Inc., Masakazu Kubo, Executive Producer, Shogakkan Publishing, and Takashi Kawaguchi, General Manager, Nintendo Co. Ltd. David Weinstein, Shoup Professor of the Japanese Economy, Columbia University, served as the moderator. • The speakers provided an insider's look at the challenges and strategies they encountered while building Pokemon into a symbol of international pop culture and global commercial success. A sum- mary of their presentations is presented below. CO SPONSORED BY THE CENTER ON JAPANESE ECONOMY AND BUSINESS, COLUMBIA BUSINESS SCHOOL • THE DONALD KEENE CENTER OF JAPANESE CULTURE, COLUMBIA UNIVERSITY THE EAST ASIAN INSTITUTE, COLUMBIA UNIVERSITY THE CONSULATE GENERAL OF JAPAN IN NEW YORK okemon was first versions to complete the collec- tool, not an end. Pokemon released in Japan on tion of species. Thus, the quest is a medium that facilitates February 27, 1996, on for all Pokemon grows as the communication among the Nintendo's handheld machine, product line expands with new users, and this increases its Game Boy. Since then, 8.2 mil- species. Pokemon Gold and entertainment values. lion copies have been sold in Pokemon Silver will become In addition, Pokemon allows Japan, and another 8.6 million available in the U.S. in 2001 cross-sectional marketing by copies have been sold in the with the release of an additional fully exploring different venues United States. This record does 109 species. of entertainment. For example, not include profits from special The distinctiveness of Pokemon cards are included in versions that were released Pokemon's game system stems some cartoon comic books to experimentally. from its 'communication' factor. enhance Pokemon's visibility The success of Pokemon is Pokemon utilizes a format called and reach out to comic book due in large part to its innova- RPG, which allows for peer readers. Further, the Game Boy tive and unique game system. communication among children version of the program can be Owing to recent technological who wish to play or trade converted to Nintendo 64 in development, many games are Pokemon characters on the which the user can play the game now equipped with superb communication cables. There- in a high-level 3D environment. audiovisual effects, but lack of fore, Pokemon can provide infi- In Japan, Pokemon's release inspiring contents. In contrast, nite entertainment, unlike the was staged incrementally. Given although Game Boy's limited traditional venues, such as the generally short life span of hardware environment has con- movies or cartoon readings in most game software (70—80 strained Pokemon's visual and which the pleasure ultimately percent of the profit is gener­ sound capacities, its game sys- ends at the closing of the shows. ated during the initial few tem is evidently superior to For example, Pokemon players months), this continued suc­ much of the available software. can extend the game spheres cess, currently in its fourth year, Therefore, Pokemon's success from the original Game Boy is unprecedented. indicates that the purchase deci- program into new games by Two reasons account for the sions of Japanese and American searching for unknown or success; first, the existence of the customers — children in partic- advanced versions of Pokemon 151st Pokemon, Mew, and, sec­ ular — are contingent upon the characters through communica- ond, the role of Japan's largest game system, which is ulti- tion cables and/or trading cards. cartoon journal "Korokoro mately the essence of entertain- With regard to card trading, Comic." In spring 1996, the ment, rather than the supple- a buyer of multiple cards can creator of Pokemon, Satoshi mentary audiovisual effects. In edit the contents and create Tajiri, used this comic book fact, the lack of hardware-gener- his/her original decks. There- series as a vehicle to conduct an ated artificial effects is consid- fore, unlike the traditional card- experimental exhibit of ered to have stimulated the trading game in which the ulti- Pokemon Mew and to distribute user's imagination and creativ- mate goal is to complete the the first trading cards as give- ity. Currently, there are 151 collection, Pokemon encourages aways. Subsequently, this mar- species of Pokemon dispersed its users to trade cards in order keting device received an enor- among three existing versions of to change the values of their mous response. Tajiri fanned the game: Pokemon Red, possessions and renew the the growing excitement by Pokemon Blue and Pokemon games. In sum, the Pokemon designing a secret twist to the Yellow. One must trade between card game is a communication programming. Officially, there 2 POKEMANIA Masakazu Kubo, Tsunekazu Ishihara, and Takashi Kawaguchi were only 150 Pokemon species. movie Pokemon the First Movie interactive. In order to adapt to GIVEN THE Unknown to Nintendo, Tajiri was released. The box office the American market, approxi­ added the 151st in the software: sales generated placed the movie mately 150 Pokemon characters GENERALLY SHORT Mew, a major character of the seventh in Japanese movie his­ were renamed to reflect the cul­ LIFE SPAN OF MOST film. Rumors of a secret mon­ tory. In November 1999, two tural preferences. For example, CAME SOFTWARE, ster that only a few people had additional versions of the video Satoshi became Ash and Shigeru the key to unlock circulated and game were released from became Gary. POKEMON'S more games were sold. Nintendo in Japan, and sold Currently, there are more EXTRAORDINARY The launching of 200,000 by the end of the year. than 500 names worldwide for INCREASE IN Pokemon's TV program in By March 2000, it is projected the 150 characters, thereby SALES April 1997 expanded the 400,000 will be sold. The two localizing Pokemon characters in market opportunities versions will become available in accordance to diverse linguistic IS UNPRECE­ drastically. The sales of the United States in fall 2000. and cultural traditions. As a DENTED. Pokemon games increased Based on its experience of result, Pokemon the First Movie from 200,000 in March 1997 to incremental development, the was ranked top in Brazil and 500,000 in April, to 1.3 million promoters of Pokemon were Bolivia in 1999, and was in the second quarter, and to able to develop an effective, recently launched in Europe, 4.7 million by the end of 1997. integrated strategy for the which is doing very well. There are no other software structure and sequencing of Pokemon has offered a games which exhibited such an Pokemon products in the Amer­ comprehensive entertainment extraordinary increase in sales. ican market. package, which includes the ele­ Further, the ratings for the first In the United States, ments of illustration, game pro­ broadcast of the TV program Pokemon was first released in gram, sound effects, digital broke a new record at 10.2 per­ fall 1997 as a TV program, fol­ visual effects, and card trading. cent, and continued to climb to lowed by the launching of the The harmony between all of over 18 percent. TV game, trading cards, and the these elements is the key to In 1998, the animation movie, all of which are mutually Pokemon's success. CONFERENCE REPORT 3 EDITED BY Joshua Safier Associate Director Sumie Nakaya Program Officer Center on Japanese Economy and Business, Columbia Business School PHOTOGRAPHY Staff, Center on Japanese Economy and Business DESIGN/ PRODUCTION Mark Green CENTER ON JAPANESE ECONOMY AND BUSINESS Columbia Business School 521 Uris Hall, Mail Code 5968 3022 Broadway New York, NY 10027 Phone: (212) 854-3976 Fax: (212) 678-6958 Email: [email protected] Web: http:// gsb.columbia.edu/japan .