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Personally, i hope they manage to turn it around. It would be better for everyone.

The biggest problem is the japanese market itself beeing too niche with their own tastes. Dragons dogma though, proved that its possible to make games that please both markets. The problem is the western market can also be shallow at times but is also very prone to advertisement, wich is something eastern publishers usually hold back on, given its risky for them.

Also, western reviewers seem to be biased and usually welcome japanese games with suspicion. Dragons dogma is a great game that has some faults, and so is skyrim, but you see completely different scores. For some reason some faults seem to be easier to overlook than others, and i think that is related to pressure the western publishers put on western publications. A power the japanese companies dont have or choose not to use.