Traditionally, Japan has had both a tolerance for violence in the entertainment arts and very low levels of actual violence. In recent years, however, violent crime among young people has risen and some Japanese politicians and citizens believe that media violence, including that found in video games, is to blame. Several organizations have been founded with the goal of tempering the influence of violent video games on young people and some sort of rating system may be coming.
A related article by Bloomberg News discusses the financial downturn that hit the game business last year, with the exception of Nintendo. Analysts credit the power of Pokemon with sparing Nintendo.