Japan's smartphone gaming industry has been hit hard recently, with an increasing number of gaming companies declaring bankruptcy. This wave of insolvencies, often referred to as "Sa-shu" (a short term for the closing down of services) in Japan, heightens concerns regarding the industry's sustainability. Experts attribute the tough business environment to stiff competition and changing consumer preferences.

In Japan, the term "Sa-shu" has become a buzzword in the gaming industry, symbolizing the harsh reality of game services' abrupt termination. Japanese gamers and industry players are growing increasingly concerned about this trend. Many value the long-term service and engagement that characterizes the Japanese gaming culture, with some lamenting the loss of popular titles and game communities.

While company closures and service terminations are not unique to Japan, they tend to draw more attention in the country because of its status as a major hub for the gaming industry. In the US and EU, where the video game market is more diversified and expansive, single company or game failures do not necessarily represent a larger trend or have as pronounced a cultural impact.