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Soundwave said:

They probably could but honestly it would probably mean scaling back some of their other games. 

As much as I personally like some of these games ... Nintendo totally is over-invested in "weird/nichey Japanese games that don't even sell in Japan".

See: Bayonetta 2, Wonderful 101, Sin & Punishment, Devil's Third, Fatal Frame, gulp yes even Xenoblade etc. 

They'd be better off investing in genre types that are more popular in the West I think, even what's left of the console audience in Japan seems to prefer that. 

Also way too many 2D games ... Mario Maker, ok, at least that's bringing something new and sure to sell, but DKC, Kirby, Yoshi, on top of NSMB/NSLU was overkill. 

 

I think that the problem is that Japanese developers and companies don't have the slight idea anymore of what the western market wants. They create niche games, release games for previous gen platforms and take all the obnoxious decisions that they can. Just look at Capcom. They announced an E3 conference with Street Fighter 5 and a bunch or remasters. WTF. EA or Activision wouldn't do that.

If you look at the PS4, it isn't a Japanese consoles. It's a western console. Mark Cerny isn't Japanese and Sony US had more input on it than the headquarters. They had some flexibility where SCEA, SCEE and SCEJ had input on the console. We know that Nintendo is more restrict and that their strategy is defined by the Japanese headquarters, while NOA and the others are basically glorified puppets. So they created a Japanese console and create Japanese games.

It's more of a cultural issue and maybe it's a temporary problem. During the PS1 years, the american video game industry was in a low time with a lot of studios and publishers closing.