Shocker! Yahoo Japan Throws in the Towel to Google Japan

By Mike in Tokyo Rogers

For so many years here in Japan, Yahoo.jp was the preferred search engine for the average Japanese person. Then, about two years ago, Google.co.jp started making serious moves into Yahoo Japan's dominance.

Last year, for the very first time, Japanese users found Google to be the search engine of choice for their needs.

Now, Yahoo Japan seems to have given up...

From the Yomiuri Newspaper:  

Yahoo Japan aims to improve the quality of its services with its recent decision to use Google Inc.'s search engine, a move that will cause the firm to rely on a rival company, according to analysts. The partnership between Yahoo Japan and Google of the United States is indicative of the fierce competition in the Internet market. The deal, announced Tuesday, means Google will dominate about 90 percent of the Internet search market in Japan. While both firms will use the same search engine, each company will provide services using its own information. "The competitive relationship will continue," Yahoo Japan said. By utilizing Google's search engine, Yahoo Japan hopes to optimize its business resources. Yahoo Inc., which owns 34.7 percent of Yahoo Japan and is its second-largest stakeholder, suspended development of its search technology and now utilizes rival Microsoft Corp.'s Bing search engine, hoping to catch up with Google--the leader in the U.S. Internet search market. What a load of "spin." Yahoo here actually admits in public that Google search engine is superior (but you and I already knew that!) when they say,  Yahoo Japan aims to improve the quality of its services with its recent decision to use Google Inc.'s search engine I'll bet this steams the buns of Yahoo Inc. in the USA. By the way, like the article says, Yahoo in the USA owns 34.7% of Yahoo Japan so you can bet that there were some heated debates about this pulling up their skirts and running for cover.  No doubt about it anymore... Google has kicked Yahoo's butt!   I have been to both Google Japan's office's and Yahoo Japan here in Tokyo. I can tell you from experience that there seems to be much more of a "buzz" at Google and I get the impression that the Google people just know that they are kicking the butt of the competition. It reminds me of the atmosphere difference between Apple and Microsoft. At Apple Japan, things are happening and people just brim with excitement. At Microsoft I get the impression of a company that is fat and resting on their laurels. It's the same at Yahoo Japan and Google Japan... With this deal, Google Japan gets 90% of the search market in Japan. Look for Yahoo to slip back to more and more of a bit player in the Japanese market over the next 5 ~ 10 years.    ---------- Keywords: Google, Yahoo, Yahoo Japan, Google Japan, marketing, Apple Japan, Internet, United States, Microsoft, Japanese, Tokyo, Marketing Japan, Mike Rogers, Mike in Tokyo Rogers, search engine,