How quickly we forget that Japan owns handhelds, which (twixt DS and PSP) held about fifty percent of the market through the prior generation

What we need to get into our heads is that Japan doesn't compete was well for the core HD gamer, but people so easily forget that the core HD gamer tastes have migrated in the direction of PC gaming as PC developers migrated onto the HD twins.

I will admit that there has been a decline in the truly groundbreaking ideas coming out of Japan, but how many Western games are really groundbreaking, really? Only two i can think of recently are (as much as i personally dislike them) Bethesda and (some of) BioWare's RPGs, and then reaching back to the breakout hit of Modern Warfare, possibly Guitar Hero and Rockband, but Japan had been doing similar games to those for a long time (Taiko Drummer, for instance, handily predates either). Aside from that, the West is simply playing on the fact that the West is, gasp, bigger than Japan, but for one country versus the rest of the planet, Japan really holds its own staggeringly well in terms of relevance in the games market.

Sorry Keiji, you're wrong on this one.

Japanese culture really hates laying people off, traditionally you get a job at a company and you stay there for life. That is why you don't see many Japanese companies laying off staff. And when they do you know the company is in serious trouble like Sony for example.

In the west company culture is to hire and fire staff as needed so you often see news stories of tens or even hundreds of people being let go when a project is done or even just at the end of a financial quarter. Western developers will often hire a lot of temporary staff for one project and then lay them off when the project is done, which just doesn't happen in Japan. 

Also the reason that most Japanese game companies bring in more revenue is because they are all heavily diversified. SEGA Sammy for example makes most of it's money from Pachinko and arcade machines, it's home videogame devision is actually lossing money, $65 million last quarter ($54 of that was earmarked for restructuring). Which is why they are currently restructuring. But their UK opperations is setting up a new studio as they are profitable. 

Namco Bandai make half their money on toys and then they also make Anime games are about a 3rd of their business. 

Even Konami and CAPCOM have planty of other businesses on top of videogames, Konami makes a lot of TCG etc, gyms and fitness spas toys etc,  CAPCOM has a healthy arcade business but they are probably the closest to a full pure videogame publisher among the big Japanese publishers.

Also there are lots of western companies that are growing right now Zinga, Ubisoft, Take 2, Paradox and Bethesda are all growing. Activision-Blizzard is still doing well but that may change as WoW fades and CoD seems to have stopped growing. 

Not saying that Japanese companies are doing bad or that western companies are all doing great or anything, just pointing out some stuff.

^ I know all of that and taking all that into account, bethesda is not growing in fact they are in a bit of trouble, so is zinga, ubisoft is also in trouble

take 2 is doing well.

And correct segas japanese game business is in the green, its the UK and US portions in the red

@mr khan I agree with you

Portables are far more important dev wise to them. That being said considering the consoles relative place in japan I have never seen this many good japanese console games ( for third, fourth, fifth) place systems

Lets take a look at console games

mario galaxy
disgaea 4
agarest
yakuza 4
monster hunter tri
ect

It sounds like there are problems within the Japanese game development community. He's probably fed up with talking to producers and developers who blindly think Japanese games are better then games in the west. It doesn't really matter if the games are better, or if they're like western games, it's the inability to improve because of their ignorance born from arrogance.

I don't think this is strictly a Japanese cultural thing. Many people have the belief that if they put effort into something it must be good, but that's not always true. One of the great things about America is that failure is seen as a good thing, as long as you learn from your mistakes.

Wait how is Bethesda and Zinga in troble? 

And Ubisoft are growing, they only lost money last year because of their restructuring, they are still growing. 

http://www.forbes.com/sites/ericsavitz/2012/02/24/zynga-trouble-is-facebook-fading-as-game-platform/

http://www.forbes.com/sites/insertcoin/2012/01/06/zynga-stock-falls-as-second-post-ipo-game-fails-to-impress/

these are the kinds of things Ive been reading

GBA was the last great handheld. I have not liked anything as much since. DS/3DS? Bleh. PSP/PSVita? Expensive.

Games wise? The only worthwhile RPGs I've seen on the DS/3DS have all been remakes or pokemon (RPGish). Most of worthwhile stuff on the PSP/PSVita have also been remakes or PS1 games.

Seems to me the evidence points to a declining interest in japenese games abroad and an increasing interest in western games. Especialy european studios.

How could you not like the ds or psp which had the greatest libraries Ive witnessed since the snes and ps2

"Games wise? The only worthwhile RPGs I've seen on the DS/3DS have all been remakes or pokemon (RPGish). Most of worthwhile stuff on the PSP/PSVita have also been remakes or PS1 games."

no offense but if you dont like them, you dont own them, and you really dont research them, I have no reason to take seriously

"Seems to me the evidence points to a declining interest in japenese games abroad and an increasing interest in western games. Especialy european studios."

Numbers and evidence dont back that up as alot of japanese series worldwide and in the US are selling more than ever

ex tales of graces F broke the first week sales record for a tales in the US

I think Inafune needs to admit the failure of his sanity. He is more or less just upset about his personal failure at Capcom. When speaking of uncreative game development in Japan, it really is only his name that comes to mind; he is the core example.

Anyway, 99% of games made in the US are clones of something else. When looking at series, there's a much greater variance in the last 7 Dragon Qusst games than there is in the 7 Call of Duty games ; I don't really see why people think the US industry is this great and creative and progressive place; because it really isn't. In addition, most US game companies seem to be failing, Eidos got bought out by a Japanese company, what's going to be left of THQ in a year? All of those mini-US companies that get closed down all the time?

Just look at Xenoblade Chronicles; that's a great example of great japanese gaming AND innovation! Sure the game really don't add that much new things, perhaps I should say that it's a great evolution instead? I've never fancied turned based JRPG, but this game seems awesome!