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Overall when it comes to action / hack and slash games Japan is light years ahead of the competition, because they've been making those kind of games for several generations. But more specifically it's Capcom, Platinum (aka the best of Capcom), Namco, and a few others that all excel at action combat, animations, and the spectacle of it all.

The best of western developers in this genre when it comes to GAMEPLAY SPECIFICALLY, are pretty much average when it comes to Japanese games. Sony Santa Monica with God of War, EA with Dante's Inferno, and Ninja Theory with Heavenly Sword, DmC, and Enslaved (I know they're European) are the only standouts I can think of.

But they can't compare to Ninja Gaiden, DMC, Bayonetta, Nier, and other JP action games when it comes to GAMEPLAY. When it comes to GAMEPLAY they're 8/10 range, but those 4 JP games are 10/10.

Now when it comes to storytelling, world, characters, and overall then yeah they're all in the same league IMO. BUt GAMEPLAY alone, yeah JP has it hands down.