The global gaming industry witnessed a seismic shift when miHoYo’s Genshin Impact dominated charts worldwide, proving that Chinese developers could compete, and win, against established gaming giants. But why haven’t Japanese studios, with their decades of RPG mastery, created something similar? Shuhei Yoshida, former Sony executive and industry legend, recently shared some eye-opening insights that explain this phenomenon.
The speed gap nobody talks about
Speaking at WePlay Expo 2025 in an interview with 4Gamer, Yoshida didn’t mince words about China’s development advantage. “The velocity of development in China is astonishing,” he admitted. After conversations with miHoYo representatives, the veteran executive revealed something many suspected but few openly discussed: Japanese studios face structural barriers that make replicating this success nearly impossible.
The core issue? Workforce capacity and labor regulations. Yoshida explained that Chinese game development thrives in an environment where companies can “hire massive teams capable of working extended hours”, a practice that Japanese labor laws and workplace culture simply don’t accommodate. It’s not about talent or creativity; it’s about the sheer industrial scale that current Japanese systems cannot (and arguably shouldn’t) replicate.
“It would be quite difficult for Japanese developers to make games the same way miHoYo does,” Yoshida noted. “Not to mention the legal problems that would entail.” This candid acknowledgment speaks volumes about the fundamental differences between these two gaming powerhouses.
Cultural crossroads in game development
What makes this situation particularly intriguing is the irony at play. Japan pioneered many of the genres and aesthetics that Genshin Impact perfected, from action RPGs to anime-inspired character design. Yet the student has surpassed the master, not through better ideas, but through different operational capabilities. The gacha system, the live-service model, the constant content updates, all require a development infrastructure that operates on a completely different scale than traditional Japanese game studios.
Breaking their own mold
Yoshida also highlighted miHoYo’s strategic evolution with their upcoming title Varsapura, built on Unreal Engine 5. This shift toward realistic graphics represents more than just technical advancement, it’s a defensive move. As competitors flood the market with “miHoYo-style games,” the company is deliberately breaking away from its signature anime aesthetic to maintain its competitive edge.
This reveals something fascinating about the Chinese gaming landscape: even industry leaders must constantly reinvent themselves to stay ahead of the relentless competition brewing in their own backyard. While Japanese developers perfected their craft over generations, Chinese studios are iterating at breakneck speed, creating an entirely different competitive ecosystem.
The conversation Yoshida opened extends beyond simple comparisons. It highlights how different regulatory environments, workplace cultures, and business philosophies shape what’s possible in game development. For Japanese studios, the question isn’t whether they can make another Genshin Impact, it’s whether they should even try.
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