Japan effectively created the modern home console market. Companies like Nintendo, Sony, and Sega laid the groundwork for the industry in the 80s and 90s.
Surprisingly, Japan lags in esports because of archaic laws. The "Unfair Competition Prevention Act" technically prohibits prize pools over $500,000 without government permission. However, the 2023 Olympics recognized esports, and Japan is finally catching up with Street Fighter 6 tournaments.