The PS2 sold 23 million consoles in Japan, which is equal to the amount of Wii and PS3 consoles sold COMBINED. The DS and PSP combined sales in Japan equal well over 50 million.
The problem is that Japanese devs couldn't adapt to the HD generation. Konami, Capcom, Sega, Namco weren't irrelevant but took a back seat to western devs this generation, and in the next generation, they are practically done. Konami has Metal Gear Solid and that's it. Capcom couldn't even get Dead Rising 3 going til Microsoft helped them.
It's sad to see. Japanese games have the heart and soul you don't see in many western games. Hopefully they finally adapt this next generation, but as I said, they are barely on the radar. Square Enix looks to be making a little comeback with Final Fantasy 15 and Kingdom Hearts 3, but who knows when they will be out and if that is all S.E. has (for Japanese).







