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Zkuq said:

I'm actually a bit surprised, but I'm leaning towards Europe here. It's a tough question though, because it's hard to measure 'who makes the best games'.

VAMatt said:
No big games are developed completely within one country. Pieces are farmed out all over the world. Just read the credits at the end of any AAA title....

Yet most games still have one main studio working on them, and that studio is primarily based in a single place. Development isn't completely distributed just yet, and probably never will be because efficient communication is vital to any project and becomes harder to do as distances grow.

I agree.  But, it is still a fact that developers from more than one country work on many, if not all, AAA games these days.