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I don't think this is just perception. Western developers are dominating the Console market, well on the HD side at least. Shooters are the big thing now and Japanese developers have nothing to offer in this area. There has also been a switch in the RPG market on consoles. WRPG are doing better then they ever have and JRPG are struggling. There are exceptions of course. FFXIII sold great, but after that you have a bunch of JRPG with mediocre sales.

I think western developers have done a better job this gen, but the main reason they are ahead in terms of sales has more to do with a change in taste then a drop off in quality.