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As others have pointed at it seems more like a case of everyone else changed while you stayed the same. As an avid fan of Japanese games I have witnessed how my own tastes use to be catered to 10-20 years ago have become increasingly niche.

PC Gaming rose, western gaming rose, phone gaming rose and the whole market grew. Simply put, when things were smaller Japan and its sales expectations were ahead of many western counterparts. Now, they struggle to keep up in the arms race. Thinking about it, if you look to the Vita and 3DS, that's basically console gaming 10-15 years ago in certain respects.

My hope is can manage to least hold the line and not move more niche as a gaming future without Japan would be one far less appealing to me.