If I understand that Paul Warren properly. The biggest Japanese games yet to come (since he claimed AC:CF and Wii Music will flop) are FFXIII (I agree) and the 360 version of MGS4... Too bad one of those games is unlikely to ever be made... If that's all the Japanese industry has to compete with the big shots, they are indeed in trouble.
Here's a better comparison of the Japanese VS Western HD games:
Japanese:
Resident Evil 5
FFXIII
FFXIII:vs
Street Fighter 4
Tekken 6
Rock Revolution
Western:
Rock Band 2
GH:WT
Fable 2
Resistance 2
Call of Duty 5
Gears of War 2
Little Big Planet
Mirror's Edge
Now, who will do better on the HD consoles? Note also that all western games are coming out in 2008 while a lot of Japanese games are coming out next year or in 2010...
How many cups of darkness have I drank over the years? Even I don't know...