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Eh, last time I checked, both parties are guilty of this. For each small efficient japanese developer, there's also a small efficient western developer. For each desproportionated big western developer, there's one desproportionated big japanese developer.

Just look at Square-Enix with their ridiculously high sales expectations, Konami that found success by going mobile/pachinko and not having to worry about game budgets (since they were so inept at it in the first place) or Capcom who's struggling like crazy these days.