My tastes are mix of both. Also I can think of many huge titles that haven't done anything technical in the west as well. Infact many titles are just rehashes of previous titles, just repackaged into a newer title, with some lame story attached. 

My only problem is when talking about Japanese Developers and Global Outlook, why is the elephant ignored.

Because it is just ONE of the HUNDREDS of Japanese gaming companies. Most of them sucks right now, and that is what Kojima is talking about.

It always annoys me how ignorant people are on the matter of console duct-taping.

You people have no idea of the amount of engineering required to accomplish such a feat.

The problem with some japanese devs is exactly that, them trying to appeal to the western audience.

what happened was consoles got powerful enough for PC devs to look at it and go "hmmmm... lets rape this shit." and rape it they did, sure, console games still look like poo compared to PC games but it's nowhere the gap that it used to be.

Fine, what about From Software with Dark Souls, and Level 5 with Professor Layton, Atlus had Catherine hit last year. 

The Japanese still own effectively half of the market for dedicated gaming devices (e.g. handhelds, where Western efforts have been laughable at best). The loss of direction for the current console generation is regrettable, but amendable. The problem is if Japanese developers aren't trying to make a niche game that is focused on the domestic market, then they make a bastardized game that appeals to no-one. They need to make games that are mainstream in focus but Japanese in style

And the importance of technological skills in video games is revealed. Nintendo has apparently doesn't have them, and yet is the biggest videogame publisher in the world.

If Japan really is falling behind the rest of the world in videogames, it's because of game design, not technology.

On the one hand, that's true. The mass market clearly doesn't really give a shit about whether or not a game has anti-aliasing or a system has a cobbled together, utterly archaic online system. I just realized that sounds kind of like a slap at Nintendo, but I don't mean it that way. It's just that it's entirely beside the point and has absolutely no bearing on success.

On the other, that doesn't really discount what Kojima is saying. Whenever someone says something along these lines, Nintendo fans always seem to say, "Yeah, but Nintendo!" Having to point to the outlier kind of makes Kojima's (or Inafune's, or whoever's) point for him. Nintendo's position is completely unique. I'm not saying that they aren't still doing do things that merit their continued success, or that their game design isn't more accessible and mass market friendly and doesn't have a more global appeal than, say, Konami's, but I also don't think the answer is to just "be more like Nintendo". Short of building a time machine, going back to the '80s, and beating Nintendo to the punch with a perfectly timed console and first party IPs that become a touchstone for gamers of a certain age, there's no sure fire way for any Japanese developer to guarantee success in today's market, and certainly not by game design alone. The mindshare Nintendo grabbed way back then - to the point that "Nintendo" became something of a catchall for a game console, sort of like how "Coke" is sometimes taken to just mean any soda - has been critical.

 I hope that doesnt happen ever, I mean I like japanese games for what they are. I would ask them to polish their games as much as they can but to always keep true to themselves.