“customers in Japan prefer the contents of developers from Japan, but rather than pursue state-of-the-art technology, it’s content-centric” states Yoshida.
If that is the actual reason... Then I would say that the Japanese consumers are smart cause it should always be about the games when it comes to consoles/handhelds and while having "state-of-the-art" technology is nice, games should always come first
As for the whole Piracy thing... The best way to combat it is to make a game that has great value and to make sure it doesn't fuck over the consumer (specially with stuff like always online drm). Piracy will always have the price edge of legit games, thats without a doubt, but there are also many that would pay for the game if they become either cheap enough or if it doesn't have any annoying DRM or if the game is a must have from the start and people cannot wait until the pirated version comes out. (Well, excluding the big named ps3 games where they come out before the public version does loll)
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