He is right, most Japanese games this generation suck.
On the PS1/PS2 era it was the opposite. I open my shelve and most games are from japan. Like Onimusha, DMC, FF, MGS, Shadow Hearts, RE, Viewtiful Joe, God Hand, Xenogears, Vagrant Story, Chrono Cross, Legend of Legaia, gran turismo, Legend of Dragoon, etc, etc, etc.
In my PS3 shelve most games are western made like: GOW3, Uncharted, Mass Effect, Elder Scrolls, Deus Ex: HR, Mortal Kombat( the best fighting game this generation for me), Assassins Creed, Dragon Age, Fallout, Killzone, Resistance, Heavy Rain, Batman, Red Dead Redemption, GTA, Dead Space, Prince of Persia, Darksiders, etc,etc,etc.
The problem here is that Japanese developers keep doing games like they used to make them in the PS1/PS2 era. Back then, by those standards, most games were AMAZING, but for today´s they are most of the time a big meh.
Meanwhile western developers keep getting better and better each generation of consoles. And now there are lots of masterpieces (according to my taste).
The main solution here, is not that Japanese developers should develop FPS or TPS, the solution here is that they should change how they see game developing, and the gameplay mechanics. Few studios in Japan are keeping up with the challenge like Kojima Productions, Platinum Games, Capcom (taking the hate aside, it´s games sell really well).
What Kojima says is just the truth, and that is why gaming giants of the past are going to hell, like Sega, SE (Eidos games are saving it´s butt), Namco-Bandai, Tecmo-Koei.
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