It's not as simple as "let's just make everything on Wii and it will be all sunshine and daisies" either. World at War bombed on Wii. Someday it may recover sales, but it will take a long time, and shooters will never sell as well on Wii as they do on the HD consoles and PC. And here we have the problem: Western developers don't know how to make anything else anymore. If it's not a shooter it's a bloody action game. If it's not a bloody action game it's a bloody action RPG. If it's not a bloody action RPG it bombs (Poor Prince of Persia).
Publishers are screwed. The developers they employ can only make a certain style of game that happens to cost out the ass and not sell enough to make up for it. How can they scrap their whole staff and start over? What can they really do? You talk about Japanese publishers having no influence, but you're completely wrong. Japanese publishers are the ones who will still be around in a decade. What good does it do you to sell millions now if you are a dead company in 5 years? Gaming is a business, and those who know how to stay in business are the ones that will matter in the future.
