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Lot's of good points in this thread.

DMJ is right but it's not that JRPGs are in less demand. It's that other markets have grown larger and faster. Because proportionally more of other types of games are being made and sold by a relatively small increase in the production diversity, this means that yes JRPGs are less important to the industry and to the total community of gamers. To the people that used to play them and still play them, JRPGs are still important.

JRPGs are expensive to make on a home console because JRPGs traditionally focused on state-of-the-art presentation, they migrated to DS and PSP. Soon you will see a bunch on Wii.



I would cite regulation, but I know you will simply ignore it.