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Megiddo said:
Japan is a very minor market when compared to North America and Europe.

In terms of individual countries, Japan has a very large video game market, but it has been left behind in the dust when it comes to regional markets.

Of course Japan is very important. I'm not just saying that because Nintendo is doing very well there, but because Japan as a market is very important for directions/trends and overal culture these Japanese developers rely on. It is also no small market when you look at hardware and software sales to any other individual country with relative populations. A good example are the great sales of Monster Hunter World and Splatoon 2.