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Mr Khan said:

This is the reason that Wii will ultimately be the saviour of Japanese home-console development. The 360 and PS3 being coeval with the average gaming PC of today means that there is a lot of overlap, and Western developers absolutely thrive when they have a high-tech environment to work in, aside from the fact that Sony focused the PS3 as a counter to the 360 (just as MS focused the 360 as a counter to the PS3), so the two are built to match each other in Western core gamer appeal

 

But as these western developers deliver masterworks on PS360, they mostly fall flat on Wii. The Japanese are used to working in a console environment, working with restrictions and optimizing hardware, instead of simply yearning for stronger hardware. The Japanese will be able to produce the standout products, which will save their relevance, except for the ones who think the way forward is trying to fight the western developers on their terms (Square Enix, Konami, and Capcom). These companies will find that you can't fight a PC developer at what he or she does best.

It looks like you thought this out very well. It seems to explain a lot of what going on now.

I would like to know when these standout products will make it out side of japan.