Building Japan's Future Through Gaming - Matt Bush, Kakugo Digital

In Fukuoka, a new type of gaming company is taking shape. Kakugo Digital, led by American entrepreneur Matt Bush, is combining blockchain technology with gaming to create sustainable regional revitalization across Japan. We sat down with Matt to discuss his journey from Chicago to Fukuoka and his vision for reinventing how gaming can contribute to community development.

――Could you tell us about your background and what led you to start Kakugo Digital?

"I grew up near Chicago, and from a young age, I was fascinated by Nintendo games and Japanese anime. However, back then, without much internet access, I didn't really understand that these were distinctly Japanese cultural products. It wasn't until university that I decided to learn more about Japanese culture, studying economics and Japanese language.

During university, I had my first experience in Japan through a two-week study abroad program. Those two weeks completely changed my life - I knew then that I wanted to live and work in Japan someday. After graduation, despite having no savings or work experience, I took a leap of faith and moved to Tokyo to work for an American securities firm.

The Japanese business culture was incredibly challenging at first. As an American, I struggled with practices like waiting for my boss to leave before I could go home. After a year, I returned to Chicago and spent the next decade working in finance and investment banking. I also worked at universities in northern Chicago and later at Stanford University's School of Engineering, but something still felt missing."

――What inspired your transition to blockchain gaming?

"During the pandemic, I began researching blockchain technology and saw its potential for empowering gamers. In traditional gaming, players invest countless hours and money building characters and collections, but they're essentially just borrowing these resources from the game developer.

What interested me was how blockchain technology could allow players to truly own their digital assets. However, I noticed that many current blockchain games prioritize cryptocurrency profits over genuine fun. As a lifelong gamer, I believe games should be about escape, exploration, and enjoyment - not about earning money."

――Could you explain more about Kakugo Digital's business model?

"Our core mission is sustainable regional revitalization in Japan, starting with Fukuoka. We're creating a pixel-art style game world that mirrors real Japanese locations. Players can explore these virtual spaces while contributing to actual community development projects.

For example, if someone wants to support the renovation of a park in Fukuoka, they can contribute through our platform. Once the project reaches its goal, not only is the real park revitalized, but the supporter receives an NFT that unlocks special features in our game world. Perhaps they'll find a digital version of that park, or an NPC child will thank their character for helping restore their favorite playground.

The NFTs also provide real-world benefits, such as discounts at local businesses or special access to various venues. As players explore more of Japan, both their digital and real-world experiences expand. It's about creating a virtuous cycle where gaming leads to actual community improvement."

――How did your background in finance prepare you for this venture?

"My finance background has been surprisingly valuable in understanding both the blockchain aspect and the business development side. Working in investment banking taught me how to evaluate projects' viability and structure sustainable business models. My experience at Stanford's School of Engineering helped me bridge the gap between technical innovation and practical business applications.

However, the biggest lesson from my finance career was understanding what I didn't want. In traditional finance, I often saw innovative ideas shot down because they didn't fit existing models. This frustration actually helped shape our current approach - we're trying to create something new that combines financial sustainability with social impact.

The transition wasn't easy. Learning programming and game development while also navigating Japanese business culture was challenging. But thanks to AI tools and the supportive environment in Fukuoka, I've been able to adapt and grow."

――Why did you choose Fukuoka as your base?

"As an American entrepreneur, I researched various Japanese cities. Tokyo and Osaka seemed too saturated, and while Sapporo has a startup program, coming from Chicago, I wanted to avoid harsh winters. When I first walked around Fukuoka from Hakata Station, I felt something different - there was a perfect balance between urban convenience and livability.

What really impressed me was the collective optimism I felt from the Fukuoka City Government and the startup community. Not only was I impressed by the Startup Visa program, but you can feel the vibrancy and determination of Fukuoka to thrive as a global hub of innovation. The number of universities, urban safety, and job opportunities draw young people from throughout the Kyushu region."

――How has your experience been with Fukuoka's startup ecosystem?

"Fukuoka's startup ecosystem is unique in Japan. The city has various initiatives like “Tenjin Big Bang”, Fukuoka Growth Next, and Fukuoka Riverfront Next that demonstrate their commitment to innovation. The developments in Hakata and Higashi Wards, the focus on supporting families with children, inclusive playgrounds, livability of local neighborhoods, organic farm sourcing from Itoshima - the list goes on.

Fukuoka Growth Next’s networking events bring creators from Tokyo to Fukuoka looking for collaboration opportunities with Kyushu-based entrepreneurs. This creates a dynamic environment where we can build partnerships across regions. The Startup Visa program was crucial for us. Beyond just the visa itself, the six-month period they provide to set up your business properly is invaluable. It gave us time to establish bank accounts, secure proper documentation, and build local connections without feeling rushed."

――What's your perspective on Japan's gaming industry and its future potential?

"Japan has an incredible foundation in gaming, with companies like Nintendo shaping global gaming culture. However, I believe there's untapped potential in how gaming can be integrated with social impact. Japanese gamers have a deep appreciation for quality and storytelling, which aligns perfectly with our vision of creating meaningful gaming experiences.

The challenge is that many Japanese gaming companies are still hesitant about blockchain technology, partly due to early negative associations with cryptocurrency speculation. We're trying to change this perception by showing how blockchain can enhance traditional gaming experiences rather than replace them.

I believe Japan has the potential to lead the next evolution of gaming, combining its storytelling expertise with new technologies. Just as Japanese companies pioneered many aspects of gaming, there's an opportunity to lead in this new space of community-focused gaming."

――Can you share more specific examples of the regional revitalization projects you're planning?

"One project we're particularly excited about involves working with local shopping districts that are struggling with declining foot traffic. We're developing a system where international supporters can invest in these districts' revitalization, receiving NFTs that provide both virtual and real benefits.

For example, if a supporter chooses a project to add shade trees and new playground equipment to a Fukuoka park, anyone who visits that park can see a plaque memorializing their contribution. Their unique NFT could then unlock a pixel-style digital version of that same park within our game world.

Looking ahead, we hope to expand to other regions like Nagasaki, where there are unique opportunities to combine historical storytelling with modern technology. Each region has its own character and challenges, so our approach needs to be customized while maintaining a consistent gaming experience."

――What challenges have you faced as a foreign entrepreneur in Japan?

"Language has been a significant challenge. Although I studied Japanese in college 20 years ago, I barely used it while working in America. When preparing to start the business, I spent three months in intensive Japanese language school right before the pandemic hit.

The pandemic timing was particularly challenging - just as I was ready to start, I had to return to America and couldn't come back to Japan for two and a half years. However, I used that time to develop our business plan and deepen my understanding of blockchain technology.

I've been positively surprised by the level of welcome and acceptance from not only the Fukuoka City government and startup community but by executives I meet at mixers and seminars who are genuinely interested in collaboration and helping connect me with the people or resources I'm seeking."

――What's your vision for the future of blockchain gaming and community development?

"I believe we're moving toward a future where gaming isn't just about entertainment, but about creating meaningful connections between virtual and real worlds. Currently, most blockchain games focus too heavily on cryptocurrency earnings, turning gaming into work rather than entertainment. We want to change that paradigm by creating genuinely fun games first, with blockchain technology serving as an enhancement rather than the main focus.

Our ultimate goal is to expand beyond Fukuoka to other regions across Japan. Think of it like Pokémon, gradually expanding region by region, but with real-world impact. In today's world, many people are lost in their smartphone games, disconnected from their surroundings. We want to use gaming to help people reconnect with their communities and find purpose in contributing to society's improvement."

――What advice would you give to young entrepreneurs, especially those from abroad looking to start businesses in Japan?

"Starting a business is like beginning an open-world game - at first, you feel like you can do anything, but then you start picking up various tasks and realize you need to level up gradually. It's important to remember that failure is not just okay, but necessary.

Don't give in to imposter syndrome. Everything in our society was made up by people who are no smarter than you. Believe in yourself. Resist the urge to conform. Take it step by step, and what seems intimidating at first will eventually become manageable.

For foreign entrepreneurs considering Japan, yes, there are challenges with language and cultural differences, but I encourage them to focus on the opportunities rather than the obstacles. The key is to focus on possibilities rather than worries."

Through our conversation, Matt's vision extends far beyond traditional gaming or blockchain applications. By combining his financial expertise with a genuine passion for gaming and community development, he's working to create something truly innovative in Fukuoka. As Japan continues to grapple with challenges of regional revitalization and technological innovation, Kakugo Digital's approach might offer a new blueprint for combining entertainment with social impact. The company's journey from concept to reality demonstrates how foreign entrepreneurs can contribute to Japan's future while pursuing their own dreams of creating meaningful change through technology and community engagement.

Kakugo Digital : https://www.kakugodigital.com

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