Nihon Falcom's CEO on Competing with China & Korea: Focus on Creativity & Individuality (2026)

In a world where gaming giants from China and Korea dominate with their massive budgets and production scales, one Japanese studio dares to take a different path—and it’s paying off. Nihon Falcom, the mastermind behind the globally acclaimed Trails in the Sky series, is doubling down on what makes Japanese gaming unique: individuality and creative spirit. But here’s where it gets controversial—can passion and originality truly compete with the sheer scale of international powerhouses? In a recent interview, Toshihiro Kondo, CEO and President of Nihon Falcom, shed light on this very question, sparking a debate that’s hard to ignore.

Following the runaway success of Trails in the Sky 1st Chapter, Nihon Falcom has been busy localizing its titles and crafting long-term strategies to expand its intellectual properties (IPs) in the West. In a candid conversation with Presidents Dictionary, Kondo revealed how the company positions itself against global competitors like China and Korea. While these nations boast unparalleled development scale and capital, Kondo argues that Japan’s strength lies in its creative essence—a quality he believes is irreplaceable.

‘We can’t compete with their scale, but we don’t have to,’ Kondo boldly stated. ‘What we bring to the table is something they can’t replicate: a creative spirit and originality rooted in Japanese culture.’ This sentiment comes at a time when Chinese and Korean studios are churning out high-quality, large-scale titles like Genshin Impact and Honkai: Star Rail, leaving many to wonder if Japan can keep up. PlayStation veteran Shuhei Yoshida even suggested that Japanese studios might struggle to match the production speed and scale of these games. But Kondo remains unfazed, emphasizing that Nihon Falcom’s focus is on crafting games with a ‘handcrafted feel’—a result of fostering an ‘amateur’ mindset within the company.

And this is the part most people miss: Kondo defines this ‘amateur’ approach not as inexperience, but as a refusal to be confined by rigid specialization. Unlike major corporations with strict labor divisions, Nihon Falcom encourages its team members to contribute beyond their expertise, blending diverse skills to create something truly unique. ‘Our founder always said, ‘We are a company of amateurs,’ Kondo explained. ‘This isn’t about lacking professionalism—it’s about embracing a passion-driven, boundary-pushing creativity that larger studios often lose.’

But let’s be real—this approach isn’t without its challenges. Prioritizing individuality can lead to clashes and inefficiencies, as Kondo openly admits. ‘It’s messy, it’s slower, and it’s not always practical,’ he noted. ‘But if we tried to streamline everything, we’d lose the very thing that makes us special.’ This raises a thought-provoking question: In an industry increasingly driven by scale and efficiency, is there still room for the ‘messy’ creativity that defines studios like Nihon Falcom?

As the gaming landscape continues to evolve, Nihon Falcom’s strategy serves as a reminder that success isn’t just about size—it’s about soul. But here’s the real question for you: Can passion and originality truly stand up to the might of global gaming giants, or is Japan’s approach a relic of the past? Let’s hear your thoughts in the comments—agree or disagree, this debate is far from over.

Nihon Falcom's CEO on Competing with China & Korea: Focus on Creativity & Individuality (2026)
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