I tend to agree with him in some ways. PLaying games like Resonance of Fate or Final Fantasy XIII where there really is this feeling of doing the same tasks over and over only to artificially extend the length of the game with no real progress or point has totally turned me off the genre i used to love. Their take on shooters have been total flops and there really is to me a gulf in the sheer scale of what you get from a Japanese game from a USA game nowadays...
On the other hand, Japan still does a lot the west can't. The nishe-r stuff like the souls games, weird handheld stuff, Catherne can't be done in the west. And they still tend to have a crown for fighting games, albeit MK was as good as everything Capcom has put out.
I totally get what he means though, if you think of the defining PS1 games it was Final Fantasy, MGS, Gran Turismo and Capcom / NAmco had a big presense. Now the big games all come from EA, Activision and Ubsoft, the shift of power has changed.
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