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ChichiriMuyo said:

*note* Nintendo is ALWAYS the exception to the rule.

It's funny - those of you that think he's crazy keep focusing on old series' that still do well, but are for the most part declining.  Inafune is talking about the fact that very few new titles in the last 5 years have met the success of new titles from the West.  They've gotten MH to be an absolute beast, but only in Japan.  And what else has come from Japan in recent years with the potential to sell 5 million?

5 million is a pretty high threshold though... I mean the only new western IPs to manage that in the past 5 years are COD (not really new either, it started last gen), Gears of War and Assassin's Creed.  Just Dance should manage it too.

Japan has seen quite a few new IPs take off besides just Monster Hunter and Nintendo games this gen, stuff like Professor Layton, Cooking Mama, Deca Sports, Inazuma Eleven, Lost Planet, Dead Rising, Love & Berry, We Ski... they might not be 5m sellers, but they're all million sellers, some multi-million even.  There's life in Japan yet, even if you want to arbitrarily discount Nintendo and Monster Hunter (which would be equivalent to arbitrarily discounting Activision Blizzard and Halo in the west).