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Samus Aran said:

Sony Japan hasn't put out anything impressive in quite a while imo. I'd like to be a fly at their offices. Sony is the opposite of Nintendo: good Western studios, lackluster Japanese studios.

Anyway, Nintendo has been doing fine as ever (game quality wise), so I'm not buying the story that Japanese developers couldn't handle HD.

Almost all Japanese developers had a hard time last gen. Very few Japanese devs actually figured out the formula about how to make the jump to HD like Kojima, Square, Platinum Games and others . They all spoke out about the creative slump Japan was in. Even the creator Keiji Inafune spoke out about it. When the Japanese were still working on consoles Westerners had been invested in the PC platform since the 90's so when it came time for console platforms to become more powerful Japanese companies mostly were confused.