Why Japan Can’t Produce Another Sony | AB Explained

In the 1980s and 90s, Japan was home to iconic companies like Sony, Nintendo, and Toyota, dominating the world stage. But today, only Toyota remains among the top global companies. What happened to Japan’s once unstoppable innovation engine?

In this video, we deep dive into Japan’s rise, its economic stagnation, and why producing another “Sony” seems so difficult today.

01:18 The Golden Age of Japanese Giants
11:15 The Lost Decade
17:41 The Galapagos Trap
22:31 The Last Hope

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31 Comments

  1. Thanks for watching! If this video gave you some fresh insights, share it and hit subscribe for more deep dives from Asia. Got a topic you want us to explore next? Drop it in the comments—We’d love to hear your ideas. Appreciate you all!

  2. I think the material wellbeing of the Japanese people is something assured for the foreseeable future, after all Japan is a very old country with a relative stable urban and middle class society that dates from the 17th century.

    It's far more probable that the country of Haiti raises to be a successful nation in the end of this century with a good government and decent standards of living than the quality of life in Tokyo sinking to the levels of today Port-au-Prince in the same period.

    That said, I don't think the Japanese can put themselves again in the forefront of technology development – save for space exploration or maybe medicine, because the conditions require aren't there anymore. These conditions and opportunities could appear again as they appeared other times in the past, but they are not there now and will not be for the next decades.

    If I would guess anything I would say that what will happen is that millions of Japanese people will either leave the country for places where they skill and knowledge will be more well paid or move out from Tokyo and other large urban areas back to the country side to becoming small farmers to support their families.

    Japan is destined to become another New Zealand with a moderate standard of living and a relative prosperous society, but irrelevant on a global scale, save for its strategic location.

  3. This is a perfect lesson for all nations that contrary to the popular belief, exports are a cost, and imports are benefit to society. Please learn MMT to understand this more. Probably, exports may benefit the few top management with huge bonuses and the major stockholders and banks, but exports do not help common people whereas imports help common people with low inflation.
    Therefore, government must calculate the cost of exports taking into consideration raw material & energy they have to import to export to benefit only a few people. The point is Japan should not depend on export income but focus on developing excellent products for the local market & there is no need to be one of the top global companies. What is essential is to assure all Japanese can live comfortable lives

  4. It doesn’t help japans judges and laws destroy competition from start ups. Look at Pokemon getting patents for simple game mechanics. The politicians and citizens don’t care as they’re country is being diminished

  5. Part disinformation. Japan's electronics industry has been sluggish since 2010s but are still leading in certain areas like sensors, high end DSLRs, gaming consoles. Innovative setbacks aside, Japanese corporations have played the role of suppliers. Many fabrication processes and parts of popular goods are from Japan. It was too long ago that S.Korea barked loudly when Japan removed them from it's white list of high tech chemical exports eg fluorine polyimide, photoresist, hydrogen fluoride. Seoul even filed a complaint with the WTO at the time. What happened to ''No Japan'' campaign lol.

  6. What this propaganda push doesn't tell you is that Korean companies poached thousands of Japanese engineers from Sony, Toshiba, NEC from 2008 onwards till 2010s. The braindrain dealt a huge hand in tech transfer.

  7. Japan is great at making hardware, but the world has moved onto Software, and Japan refused to adapt since Software engineers aren't as valued in Japan.

    It's why Japan never created their own Google, Microsoft, Android, etc. Japan stubbornly kept to hardware as their main focus.

  8. China is now the leading tech giant in Asia. It has surpassed and dominated South Korea is many industries and fields i.e Shipbuilding, EV battery technology, semiconductors, memory chips, commercial drones, A.I etc. South Korea is done.

  9. From a historical perspective. Japan is a small country in Asia among the giants. Japan moved quickly, and it's to its advantage. First industrial revolution in Asia. Asia will do well in the 21st century; the drag is US policies after decades of cheap labor and products enjoyed by the USA.The Asians got back to their feet to their ancient glory. Japan is not in a bad standing in the world, under the control of the US,, along with South Korea. Today, Asian countries haves to choose? But Southeast countries did well without choosing, like Singapore and others.

    Being in the shadow of the US, there is a threshold that can't be exceeded by the Americans. Both got a lot of advantage from the US post wars when the US want to farm out their industries in the 80s by Regan. Today, the advantage is in China, but Japan can't pivot under the US. USA Inc. will buy or stop any advanced industry in Japan and Germany. That is always the plan. People just need to reconize it.

    Back to ancient time, China is the center in Asia if not the world. China size in population and land mass are the proof of Chinese engeinality by the numbers. A country can not be big in economy and long history if not guided by sound principles which are Chinese philosophies published in all languages. That is the secret souace of the big China. Japan don't have that and was a student but not a good one by the fact of attacking the US and China during WWII era (The art of war).

    Sad to say, today Japan is a resign nation because it is capped by the two big one. Therefore they are not going to try hard gving the geo-politics, Japan is there just to surive along with the S. Korea.

  10. Japan still seems to absolutely dominate in the camera business. I think we generally don't see many new start ups in the top global companies. It's just incredibly hard.

  11. Plaza Accord is the single biggest reason for Japans downfall. It made Japanese exports uncompetitive and drove capital into the real estte bubble. But i’m not surprised its not mentioned in this video because so few people know or understand it. Its almost never discussed in the media. Because it exposes US imperialism and domination over Japans destiny.

  12. The difference between the outlook of South Koreans and Japanese. Koreans often delude themselves thinking they are the best at everything out of proud jingoism. The sheer arrogance dismissing the Chinese even when their country has fallen behind in key sectors they once dominated eg Shipbuilding, semiconductors, memory chips etc. The irony is unreal and quite amusing.