Traveling over New Years, suggestions?

Hi, my friend and I will be in Japan over new years. We will be there from Dec. 19th through Jan. 5th.

Since I have a Japanese friend to stay with close to Tokyo, I want to spend the first week with him and Tokyo. However, the second week, I would like to travel to other cities in Japan. This will be over new years holiday. I'm aware this can be very challenging but I'm also very excited to get to see and participate in New Years celebrations and events. Can I get some suggestions about which City is known for having a big new years festivities? I would like to get a realistic travel itenary for 8 days of travel in Japan (excluding Tokyo) during the Japanese New Year Holidays?

Thank you so much

1st and 2nd of January many shops and so on will be closed.. anything that is not closed will be very very busy!
Get a JR rail pass or join a tour group.

New Year's celebrations in Japan tend to be very quiet- it is a time to stay inside with your family, eat and watch TV. People traditionally visit a shrine on New Year's Day but I wouldn't call it "festivities", people wait in a line to get to the front of the shrine (possibly for an hour or more at large shrines) and then pray.

Accommodation and transport could be tricky over that second week.

Depends where you are.

The past two new years I've had great times out with my friends. Last year was at the temple near Tokyo Tower, great countdown, balloons being released, music, food, good time, the year before saw fireworks in Kanagawa (forgot exactly where, my friend took me).