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I think that japanese people are a bit biased against western games. I mean there are some cultural differences but let's say it clearly, this generation marked the rise of western gaming and maybe the fall of japanese gaming.

I can't beleive there is still people that brings up the theory that western games don't have story and atmosphere and mood. Because there is no japanese game in this generation that can best the likes of Mass Effect or Dragon Age o Heavy Rain in that department.

Probably the fact that the japanese market is moving toward handheld gaming, while in the western market classic gaming is still predominant explain partially why some quality western games fail or seem to fail in japan.