Actually, if anything Japanese numbers are still pretty darn amazing. Just look at the top 10 Worldwide sales. The Japanese numbers alone are enough for a game to top the charts. How oftern does that happen with any other single region? Even Infamous and Titanfall couldn't do the numbers that some of the top Japanese games reach.
Take the UK for example. The Last of Us remaster had the 5th(?) biggest launch in the UK out of the current gen games and it still sold around 70k, a number not that impressive by Japan standards.
As for the hardware. Vita is doing bad, but better there than anywhere else. The wiiu is not doing well, but neither is it in the rest of the world. Didn't the 3ds break several records there and outpaced nds for a while? There's only so many 3ds's that Japanese people can buy. And compared to the rest of the world, it has done so far better overall.
As for the ps4, Sony was well aware that that would happen (hence delaying its launch in Japan; but they couldn't delay it for years. The Japanese were already mad at them for the delay). They do not have a single exclusive Japanese centric game, so of course it's flopping. We don't know what would have happened if it launched with FF 15 and any other proper exclusive.
I don't think that home consoles are dead or have no future there since both wiiu is doing about as bad as the rest of the world and ps4 numbers are what they are because of lack of exclusives. Does that mean that if ps4 gets exclusives it will fly off the shelves? No. It's all speculation. The point is, if it does get a constant stream of Japanese centric games and still doesn't sell well, then perhaps home consoles will be extremely niche in Japan.