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The main problem with western games in Japan is that they're marketed horribly.

Look at the Crash Bandicoot games on the PS1. They sold very well in Japan (Crash 2 selling well over 1 million in Japan), yet they were developed by a western company. So what's the deal? The problem is that western developers try to take western games and push them with western-style marketing...in Japan.

While I would love to see Japanese gamers be more diverse in their game tastes, the solution for western developers is simple: Make your game have Japanese appeal.