U.S. companies rush to fill Japanese software void
Article Abstract:
US personal-computer software vendors are rushing to enter the Japanese market, taking advantage of the fact that the domestic industry is a virtual bust. Despite predictions of great success, Japanese firms have scarcely made a dent in the $25 billion world software market. The failure has had serious repercussions in Japan's computer industry, as software, not hardware, is where the greatest profit is to be found today. Some observers say Japanese firms have largely failed to see software as a distinct product from hardware. The slow growth of the Japanese PC market has also contributed to the small demand for user-friendly PC software. A notable exception to the bleak software scene is Japan's thriving video-game industry, led by Nintendo Co and Sega Enterprises Ltd. US software firms such as Lotus Development Corp and Microsoft Corp are permanently implementing aggressive price cuts.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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NTT's cutbacks signal uncertain transition in Japan
Article Abstract:
Nippon Telegraph and Telephone Corp (NTT) is set to announce a three-year cost-cutting plan that will reduce its payroll by 30,000, or more than 10 percent, and consolidate many retail outlets and offices. The company predicts that pretax profits for the fiscal year ending Mar 31, 1993, will be 229 billion yen ($1.95 billion), a 35 percent drop from FY 1992. Profits may tumble again in FY 1994. Changes at NTT could have a major impact on Japan's economy, for the company is the nation's biggest employer and capital spender. NTT's problems stem from its rocky transition into the deregulated market place. In 1985, NTT was privatized. Before that, the telephone company's largesse helped build up such suppliers as Hitachi Ltd, Fujitsu Ltd and NEC Corp into a tight network called 'The Family,' but those generous days are no more.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Microsoft targets software piracy by Japan PC users
Article Abstract:
Microsoft Corp says that its efforts in Japan are being severely damaged by widespread software piracy in the country, which is the biggest microcomputer market outside the United States. Makoto Naruke, president of Microsoft's Japanese unit, estimates that piracy is four times worse in Japan than in the United States. Microsoft will send letters to 450 software publishers and developers, including the local arms of US and European firms, and ask them to 'clean up the situation,' says Naruke. Microsoft is not likely anytime soon to file lawsuits, a tactic viewed by Japanese as crude. One cultural problem is the emphasis Japan places on hardware, which tends to undervalue software. For example, despite the strength of its computer industry, Japan has no software firm that is competitive overseas.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
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