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"Japanese games are bad" or "Western games are bad" always comes cross as ignorant generalizations to me, usually with the person proclaiming such using their own tastes as some kind of universal metric. It's even worse when they cherry-pick their examples.

That being said, some of the bigger Japanese publishers definitely needed a kick in the rear. Some of them became content with low standard sequels that were really just rehashes of what they'd done before or games that were all style and no substance.

Some of the big western publishers could use some of that same medicine, too, of course, especially with franchises that get new additions every year.