Actully from the releases i've seen i dont think console JRPGs or handheld JRPGs are declining at all. in fact here in Europe for the first time we getting localisations of RPGs that you never would have heard of before. perhaps that has something to do Microsoft helping these developers localise (like when they got exclusive JRPGs first) so they can accomodate the JRPG market here in the west.
unfortunatley here in the west, JRPG fans support Sony, and its the PS3 console where JRPGs do better sales both in Europe and to a lesser extent the US.
so we've had very messy releases, but there are definitly a lot of JRPGs here in Europe, whether or not people are buying them is another question althogether. (simple answer, i dont know if 200,000 copies, or 100,000 copies sold in Europe qualifies as a success).
in Japan, RPGs are strong, with Monster Hunter and Dragon Quest breaking records. but here in the west JRPGs are standing on the very weak shoulders of Final Fantasy 13. but i think if the developers keep localising with top quality products, there success will grow.
a list of some console RPGs in Europe and the US:
Agarest Generations of War
Tales of Vesperia
Resonance of Fate
Star Ocean 4
The Last Reminant
Magna Carta 2
Eternal Sonata
Valkyria Chronicles
Nier
Last Rebellion
Diseaga 3
Infinite Undiscovery
Ateleir Rorona: the Alchemist of Arland
so in a nutshell the JRPGs are here in west, both on consoles and handhelds, whether they are successful or not is not something i can ascertain, as i dont know what qualtifies as a success for developers.
