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He is sorta right, its not that Japan cant keep up its that they refuse to.

They still are stuck with the 1990's JRPG with the hero saves the day, yada yada yada. Capcom is one of the few companys that realizes this, thats why they changed RE4 and RE5 to a more action packed game.

 

@MakingMusic

Good points, but the article is talking about Game Developers, Nintendo has the weakest console this gen, and they dont really push their console to the limit. Now Polyphony is really working their asses off, they're working harder than most US game developers are.