The uniquely Japanese institution of the tanki daigaku (two-year university) known as 'junior college' in English was seen as Japan's answer to increasing participation in higher education. Initially established on a provisional basis in 1950, becoming permanent in 1965, they were the higher education institution (HEI) of choice of almost 500,000 students a year at their peak in 1995. Demographic changes after 1992 brought about a buyers' market for higher education with institutions in aggressive competition for students, a battle in which the tanki daigaku seems destined to be defeated. This paper examines the options available to junior colleges in crisis and in so doing identifies a number of features of a virtually universal system of higher education which raise issues for other advanced societies grappling with massification and commodification in their own higher education systems. The paper reviews the literature in this area, as well as drawing on a year of participant observation as an associate professor from 2000-2001. (Contains 2 tables.)