While sales have dropped somewhat in Japan, things arent really as bad as people make them out to be. About 24 Million home consoles have been sold in Japan this gen with Wii, PS3 and 360 compared to about 27.5 Million of PS2, Gamecube and Xbox. We can probably expect the Wii gen total to top 25 Million when all is said and done which would only be a ~2.5 Million drop Gen over Gen in the face of the handheld explosion and mobile/browser craze.
The only difference between the Wii generation and the PS2 generation is the split. PS2 held most of the market with a lead of ~19 Million over Gamecube while PS3 and Wii are gonna end up fairly even with ~2 Million between them.
Over 20 Million consoles will be sold in Japan this generation.
