Slimebeast on 07 August 2009
Anyway, saleswise USA stomps Japan, and has been for two decades now. US software sales crush the sales of Japanese games.
Japan's glory days are over, and like Kasz and StrategyKing said, they themselves are aware of that they're old-fashioned (therefore companies liek Capcom and Squirenix are modernising, by licensing Western game engines, hiring Western game developers etc, but it's a slow process).
Almost all the innovation in gaming software comes from the West, and mainly the US.
