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This generation has seen the Japanese gaming industry fall further behind the North American and European gaming industries. This is typified with the likes of Pro Evolution Soccer being beaten annually in terms of sales and quality by FIFA, should Japanese developers start to worry? 

It doesn’t stop there. Most of the best major RPG’s, once a Japanese developers speciality, are now made either in Europe or North America. Oblivion, Fable, Fallout, Dragon Age and Mass Effect all now take a huge portion of the RPG market. In terms of raw power, again, Japanese developers are losing their grip. Uncharted, Gears of War and Killzone produce the best graphics on console and they are all made by Western developers. Metal Gear Solid 4 and Gran Turismo 5 are really the only games that can compete.

 

For full article: http://www.gamingcapacity.com/kojima-and-mikami-speak-out-about-the-japanese-gaming-industry/