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Blue Dragon was just the beginning for them you have Trusty Bell(Eternal Sonata in NA) then Lost odyessy.

there is a bunch more like Blue Dragon 2, Cry On, Magna Carta 2, Infinite Undiscovery.

But there is no reason the Japanese wouldn't take to Cold Planet, Dead Rising. As they are made by Japanese companies and follow in the footsteps of other popular action titles in Japan. 

there is also an audiance for good more American games like GoW and GTA. But I think what its really lacking, and its going to sound stupid, but it's the crap. Yes the cheesy little Gundam games, the constant flow of anime based games, where is bleach, Naruto, Dragon Ball, and One Piece titles? Where's Majhong? It's not there and that's what is holding them back.

Trusty Bell, Lost Odyessy and the other big ones that Microsoft spent buckets of money on to ensure stay on the 360 have a big job. It has the responsibility of getting the rest of the Japanese games over on their system and roping in enough people to convince developers there is a market for it.