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theprof00 said:

Perhaps I'm ignorant, or just have a really bad memory, but what first party japanese games did they use to make?

According to the wiki, SCEJ made more games for ps3 than ps2 and ps1 combined

http://en.wikipedia.org/wiki/SCE_Japan_Studio


There's stuff which is not on that list which was published & funded by Sony but wasn't developed by Japan Studio, like Parappa the Rapper; Alundra; Wild ARMs; Boku no Natsuyasumi or Ore no Shikabane.  I wouldn't exactly call them first party games but they're the kind of stuff we're unlikely to see on PS4.

I think OP is romanticizing the past a little, but I do think that it's unlikely we're going to see such mid-tier output from Sony on the PS4.  They're barely putting it out for Vita which is a much more viable place.