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I get the point your trying to make here.....but your wrong.

Japan is still very important from a hardware perspective of course.

But if were talking software it just isn't close anymore, they are being left behind. Nintendo first party is one of the few who still make compelling, high selling, and great reviewed games.

Hell even Sony's strongest 1st party studios are not Japanese based anymore, all you have to do is look at Naughty Dog, Guerilla, Sucker Punch, and Santa Monica to prove this.

It might suck in some ways because I was an avid supporter of Japanese companies up until the current gen, but lets be honest here, Japan is certainly on the decline.