Current State History Forecast Top News 5 Page  1   2   3    A Weak Software Industry; Video Games an Exception Japanese video games are popular among youngster    Software is one of industries that are weak in Japan. Domestic firms are far behind those of the United States in the development and production of computer software as well as movies and other visual content. The exception is video games, which continues to maintain a high share of the global market. Japanese videogame software accounts for the greater majority of popular videogames in the U.S. As for videogame hardware, more than 70% of sold in America are those of Japanese manufacturers. The high quality of Japanese manga (comics) and anime (animation) and the plentitude of related human resources are supporting the Japanese videogame software industry.    The biggest weak point of Japanese industry, which is basically maintaining favorable conditions, is the financial services industry centering on banking. Through decades following the end of World War II, Japanese banks and financial services were under the strict guidance and supervision of the Ministry of Finance. Banks were not permitted to conduct other financial services, and vice versa. There was no room for individual companies to create and devise original products. A delay in Japan's implementation of deregulation and liberalization resulted in Japan falling behind the U.S. and Europe in terms of competitiveness in this field. Furthermore, even major financial institutions faced the threat of bankruptcy due to the enormous amounts of non-performing loans that were left after the bursting of the economic bubble.    It was not until around 2000 that the move towards the merger, acquisition or partnerships of and between financial institutions was accelerated. As of the autumn of 2004, the Japanese financial services industry has been reorganized into seven major financial services/banking groups: Mizuho, Mitsubishi Tokyo, Mitsui Sumitomo, UFJ, Resona, Mitsui Trust and Sumitomo Trust and Banking. The financial industry, nevertheless, has not yet completely recovered from the effects of the bursting of the economic bubble. UFJ and Resona both recorded losses for FY2003.    It is said that productivity in industries such as agriculture, construction, foods, energy, wholesale and retail, remain at a level that is about two-thirds of the U.S. This is because companies that should otherwise have left the market are lingering through subsidies and protective administration.    The reduction of official regulations leads to a lowering of the burden placed on the people. Administration is streamlined and made more efficient, providing a greater forum for the private sector to exert their strengths. With this as a basic policy, Japan has been earnestly launching on deregulation since the 1980s. The results of such efforts are gradually being seen, but resistance forces still remain strong. The privatization of the Japan Highway Public Corporation has already been decided, and the postal service is scheduled to be privatized in 2007. Whether the privatization of the postal service will proceed smoothly is likely to become a key, for the time being, to forecasting the future of Japan.