If Final Fantasy 12 and Kingdom Hearts are to blame, why was FF12 the lowest-selling Final Fantasy since #6? FF7, FF8, FF9, FF10, and even that awful FF10-2 all sold more than FF12. Not to mention, all of these games also outsold Kingdom Hearts AND Kingdom Hearts 2! (Well, if we get really technical, Kingdom Hearts outsold FF10-2 and FF9, but only by a very small amount.)
There are legitimate reasons why Japanese RPG sales are declining, but the premise in the initial post is seriously flawed. 
End of 2008 totals: Wii 42m, 360 24m, PS3 18.5m (made Jan. 4, 2008)







