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@Oyvoyvoyv: The reason it boomed is Nintendo tapping the casual market with the DS. The hardcore market has been decreasing YoY. Nintendo profited a lot from that , but the big japanese publishers lost sales in Japan. At least that´s what I think so. They should focus on handhelds and especially the PSP for Japan, that´s where all the core japanese gamers are right now.

Europe and N.A also have low birth rates and issues with relationships. I don´t think this is an issue comparatively to West. Once a gamer, always a gamer. Also people shouldn´t forget that Japan has a thriving arcade market which Europe and N.A don´t.