No, they're not dying, the industry is out-growing them. JRPGs have ALWAYS been niche products. The problem now is that with high-definition systems, the cost to make these games is out-stripping the sales numbers.
In earlier generations, a JRPG could sell 500k and be a financial success. The sales data is sketchy but even in the PS2 era, almost all JRPGs sold under a million copies. Under the development system on the PS2, costs were still low enough where they could be a money-maker for the developer and publisher. With the PS3 and 360, they need to sell more because of the ridiculous cost to generate that much high-definition content.
We'll always have JRPGs but expect to see most of them slowly drift to handheld devices, where dev costs are still low enough where they can sell 300k copies and turn a tidy profit.
What I'd like to see is some of these JRPG developers more aggressively go after XBLA and PSN. If the genre is going to survive on consoles, that's where it will have to be.

Or check out my new webcomic: http://selfcentent.com/









(mostly)




