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Groucho said:
Considering the number of PS3s in Japan, most of those games did quite well.

I think the problem for developers is the need for that qualifier, especially if the developer counts primarily on Japan for their survival. Things could be worse, mind you (you can be making JRPGs exclusively for the 360, for instance), but that doesn't mean this is great either.

And before you start, no, sales for Wii games aren't stellar either. Something needs to bring Japan back into console gaming. Hell if I know what it is, though.