Well I agree with the OP that it´s because Nintendo innovated that they won over Japan, but they didn´t go against any japanese trend. They rather focused on something that would have a worldwide appeal, their games are nor western neither eastern just international or rather "Nintendo"-ish.
Also I don´t agree that japanese game developers have started westernizing their games. If you look back at the 80s and up to the late 90s, all kind of sorts of games came out of Japan that would be successful in the West but weren´t typically japanese. Especially in the arcades, Konami and Capcom made many games that people would nowadays consider western. But on consoles too, for example Resident Evil and Metal Gear/Metal Gear Solid have always been more western than eastern.
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