Do you think everyone would give 2 shits about him, if he didn't say something outlandish that has arguing one or the other?
He got got what he wanted.
Now there are a lot of exceptions, but a lot of recent games, particularly western ones that used to be big franchises or devs that used to be PC specific, have gotten dumbdowned in recent years. How many games have there been like fallout 2, deus ex, baulders gate, neverwinter, planescape recently? What about RTS's that have pretty much died altogether except for starcraft. I'm not saying japanese games don't suffer from similar issues, they do.
Old franchises get stale, Old companies get in trouble, some companies rise up etc. Old franchises are rebooted etc. People leave and enter companies. It happens in a lot of markets. Most people don't stay at the top forever.
I'd agree that the amount of Great home console games has gone down a bit
But, I think it's unfair to judge japananese games unless you play handhelds, which forutnately/unfortunatly for a lot of people is where a lot of the japanese devs aim because the home console industry has severly dwindled in japan.