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I think I understand when people say the japanese devs are irrelevant this gen. I don't think people refer to Mario or Nintendo games when they talk about japanese devs because Nintendo devs don't represent all of Japan. Nintendo will always be relevant and a huge player in the industry.

The picture is different if you talk about other devs. Devs that were mostly dominant previous gens. Outside of forum communities when people are waiting for big games they're waiting for games from America and Europe. The giants of previous gens are not giants anymore, Take Two, EA, Ubisoft, Bethesda and Microsoft, Naughty Dog, Santa Monica etc make the big guns every year.