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What a lot of Japanese publisher started doing was to release clearly lower quality, lower budget games in order to maximize their margins but the result was that consumer confidence dropped. Lined up against many major western releases, it was clear that much of what Japan produced wasn't as polished. Even classic and beloved franchises were getting low quality sequels that did not measure up to their predecessors.

I don't know how or why that changed but it seems obvious that now they mostly understand that they get better short-term AND long-term value out of high-effort releases.