Misleading title.
Well, in response to the OP, Nintendo is sitting on top right now in both hardware and software sales. Also, FFXIII sales > any other RPG on consoles this gen.
Let's see my top 5 games of this generation:
1. MGS4
2. Demon's Souls
3. Valkyria Chronicles
4. Super Mario Galaxy
5. Uncharted series
1 Western game, 3 new intellectual properties, 2 being Japanese.
You can prefer Western games if you like, I won't say you're wrong in doing so, but keep in mind others have different opinions.
@Barozi: I can tell older Capcom games are Japanese made with Western influence.
But this gen they've gone too Western, and to be honest, their efforts have been terrible, apart from Dead Rising, MHTri, and their Mega Man games.
Edit: I didn't pay attention to the bit about FFXIII not being new. So scratch that. But my point about Nintendo stands. Even if there aren't many Wii games, they still put all other titles to shame with their sales.