Yeah many here have covered the topic. Japanese publishers/developers have adapted to their paradigm. Usually games that appeal more to the japanese market and niche western market will have more modest budgets.
In the end whats important for a company to survive is to make a profit. They dont need to go with huge games, huge advertisement campaign, huge micro transactions and huge sales to make a profit.
In all honesty, western publishers tend to run greater risks because of this. This leads them to make few new IP's and mostly sandbox and FPS that releases in a yearly basis to have a steady stream of income. Ubi soft for example, may get in trouble if the AC series sales take a serious nosedive. More modest developers take less risks by having several but more modest games. Namco is a good example of that. They make alot of modest games. If one of them fails its no problem because the loss wasnt huge and 5 others did good.
For a western company when one of their games fail, its a massive drama.
So, no. Don't get fooled into thinking that there is only one way to tackle the market that is correct.
