I am not trying to start a flame bait, but I had an arguement with a friend and telling him how Japan is leaving the console industry and Japanse developers/publishers who don't embrace the western audience will be gone soon. He told me there is enough people who buy Japanese games that are Japanese themed in the west to keep them alive. Do you believe there is enough people in the west who buy japanese themed games?

Mobile is part of the game industry so they're going nowhere anyway.

Also your friend is right.

We were talking about the console industry.

Well your friend is right anyway, lol.

There is at least one big Japanese game publisher that knows their bread and butter are and that's Square Enix ...

Not all Japanese publishers have to embrace the western audience when some can live with domestic customers ...

Your friend was indeed correct ...

I thought square enix was embracing western audience with Tomb Raider and Kingdom Hearts (disney characters).

Umm, Atlus does pretty good, And nintendo IP still doing very well.

Japanese developers have a strong foothold in the handheld console market, some fairly strong foothold on multiplatform gaming, and, somehow, a continued growing foothold in the PS4 game construct especially.
TGS is a clear indicator of this.

You're friend is absolutely correct.

I specifically said, "not ALL japanese publishers have to embrace the western audience" ... 

Square Enix embracing the western audience DOES NOT PRECLUDE other Japanese game publishers for doing the same without embracing the western audience ...

Squenix is embracing the west by releasing western games of western ips developed by the western developer.

Not sure if that works.

Disney is a big deal in Japan anyway, so it's not as if Disney in KH is to appeal to the west.