Now I get that this isn't a fair comparison cause we're basically comparing developers across 2 continents against just one little country.

But despite that huge gap in the number of developers, recources available to them Japanese Devs are really dominating this gen so far, atleast in terms of highly acclaimed games.

Here's a quick look at the highest rated games this gen, meaning 90+ metascore.

Note: For multiplatform games, I am using the score from the version that has the most reviews, usually this gen that means the PS4 version as it's the one devs send to the reviewers.

Metal Gear Solid V- 93

Super mario 3D World- 93

Bloodborne- 92

The Witcher 3- 92

Super Smash Bros.- 92

Bayonetta 2- 91

As you can see only one out of the 6 titles to get a 90+ metascore is from a Western Studio.

Now things may change next year with several of western games looking like they could score above 90.

The ones I think have a shot at that are:

Uncharted 4, Mass Effect Andromeda, Gears of War 4, Horizon: Zero Dawn, Dreams. I specifically say these 5 games because they're either part of a franchise that usually gets those 90+ scores or is being made by developer who has delivered a 90+ title in the recent past.

But the future also looks quite bright for the Japanese side as well, the games coming from them that have a shot at similar critical acclaim include Xenoblade Chronicles X, Street Fighter V, Zelda Wii U, The Last Guardian, Gran Turismo Sport, Final Fantasy XV. Yes I know FFXV is a controversial pick, but let's not forget that all main enteries until XIII have a 90+ metascore, so it does have the potential.

I'm a bit confused by why people are always talking about how Japanese devs have lost their touch, when they're the ones delivering the majority of the very best games. 

Not shitting on Western Devs by any means, I think by the end of the gen there will be more of these 90+ western games than Japanese ones, Which should be expected considering how many more western studios there are.

Just trying to give the Japanese devs the credit they deserve.

I think the industry has changed. During the PS2 era, gamers were more hard core. During the 360 era, gamers became both casual (for a time) and dominated by the dreaded dudebro. I think right now, the demographics have shifted back in favor of the people like us. I mean, you have COD, sure. But look at the games that are getting the most hype. Bloodbourne? Would a game like that have mattered during 2006? Probably not.

WOW! You make a really good point!!
I think when people say "Japanese games" people always thinks of those anime styled games. Of course thats just what I find.

Edit: oh and i cant believe 3 of them are only on Wii U! 

I feel kinda clickbaited into this, you had single player games in mind while the statement is general. Needles to say, It is totally reversed in some other departments.

I agree. There are more japanese games and better.
Tales of zestiria is soo awesome!

I totally agree. Very insightful! My only question is... do people's tastes shift first? If I read what you said correctly, you're implying that people sort of just go with whatever platform is leading the way. Like they are sort of forced into it due to their platform of choice. But what if their tastes shift FIRST, which then dictates the platform they CHOOSE? 

It's an interesting question.

Nonsense. The ps2 was the king of the casuals, there's a reason it sold over 150 million.

The Witcher 3?

I think with games like MGS V, Splatoon, Mario Maker, Bloodborne, Monster Hunter 4 Ultimate and now Xenoblade Chronicles X launching this year, there's definitely mounting evidence for an argument to be made that top-tier development in Japan is enjoying something of a renaissance, especially considering over the last five to ten years people have been arguing (including high profile Japanese developers) that Japan's games were no longer at the forefront of game design, and weren't keeping up quality-wise with the boom in the West.