I didn't bother to read the original article because the writing is terrible but I'm going to comment on the thread's topic. I'm not so sure that Japanese game development has a rosy future. I think it will face the same problems that the Japanese film industry faces compared to its U.S. counterpart.
It will eventually get to the point where the price of making major games will be beyond what most Japanese developers will be able to afford (it has already started with the HD generation). As video games become even more mainstream and video games evolve (the immersive experience will be well beyond what we have today) it will require budgets that dwarf anything we have now.
I also think the areas of Japanese game development that will be decimated by this will involve games that rely heavily on Japan for sales (JRPGs for example) or play primarily to Japanese pop culture. It doesn't help that Japan's population growth is basically at a standstill which will make the problem even worse.
Some will point to Nintendo and say that a Wii like philosophy will save Japanese game development but I doubt that. Even cheaper experiences eventually will become very expensive in comparison to what we have today and all it will take is Nintendo slipping for even a generation to spell major trouble for Japanese developers relying on this strategy.
Please note that I'm not saying that Japanese game development is completely doomed but that it will become to video games what Japanese movies are to the World. It will still be relevant in Japan but not so much on the World stage.
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