One-hundred to one. No, those aren't the odds on a long shot in Saturday's horse race, or the probability that Windows 97 will be released on schedule. It's the ratio of Japan's PC software imports to the nation's software exports.

In 1995, according to recently released statistics, Japan imported JPY393 billion worth of personal computer software, while exporting less than JPY4 billion of the same. The continued strong sales of PCs mean that software imports are likely to have surged in 1996, while the export figure looks to be stagnant.

One factor behind Japan's burgeoning PC packaged software trade deficit is the unfortunate reality that Japanese developers have never come up with a viable operating system. Nearly all of Japan's PCs are running localized, imported versions of Windows, Mac OS, or DOS.

Neither have Japanese software houses fielded a strong team of homegrown applications. Look at the monthly list of top-selling PC programs in Japan, and you'll see a lot of familiar names: Microsoft, Lotus, Borland, Netscape.... The only domestic company that regularly shows up in the lists is Justsystem.

Consider the most successful of the developed-in-Japan PC applications. With the exception of Ichitaro, all (like Aurora Ace, OASYS, Sanshiro, Kiri, or The CARD) are pretty much 2nd-rank players in their respective markets, with individual shares of 5% or under.

Things are much different in the field of game software. Japan exported nearly JPY77 billion of game software in 1995, and imported less than JPY5 billion. Why is Japan so successful in developing game software, and game machines and computer hardware, but not in creating packaged PC software? There are historical and cultural factors, to be sure, but whenever "Japan Inc." has thrown its weight behind an endeavor, the result has usually been a rash of successful products.

Is software development a different proposition, or is Japan just late to the playing field and preparing to play its usual game of catch-up? There are some indications of the latter, but time will tell.


Our November and December issues provided contact information and connection costs for over 400 Japan-based Internet service providers. Three ISPs who were not included have asked to be mentioned: InJapan Internet Services (phone 03-5330-2406; http://www.inJapan.net/) charges a JPY2,000 setup fee and JPY2,000/month for unlimited access; Web Shizuoka (phone 0120-244-260; http://www.wbs.or.jp/) has rates of JPY10,000 for setup and JPY20,000/month for unlimited access; Crenet (phone 03-3444-9988; http://www.crenet.or.jp/crenet-online-e.html) is JPY5,000 for setup and JPY5,000/month.

While you're on the Web, don't forget to check out the Computing Japan homepage at http://www.computingjapan.com. We're in the process of improving our site's value and ease-of-use, so if you haven't visited us online recently, come on in. The door's always open.


WM. Auckerman