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Skiing and snowboarding! In the winter at least, this is probably the main reason most people come to Niseko. Of course there is also great sushi and other Japanese food in the village, and bathing in the onsen is great too, but the reason you will be here will be primarily to enjoy the amazing powder snow.
Tip from the locals for days when it is snowing: get out early, make fresh tracks in the powder that fell overnight, then take the afternoon off, then head out for night skiing to enjoy the lightest snow (it's coldest at night, and so the snow falling at night is the lightest). Added bonus is that there are few people on the slopes at night. And the lights actually make it easier to see the terrain than during the day time when it is overcast or stormy.