While Japan does need to solve a few issues regarding their production, localization and distribution models, this whole issue has been blown out of proportion. A lot of it has to do with perception rather than actual facts, which makes things seem worse than they actually are. As others have already pointed out, the increase of competition in the console space from former PC-only devs and Microsoft's involvement in it has an impact on its own regardless of what Japan does, which combined with the rise of handhelds in there ends up giving a negative image in the West. The difference in how handheld games are valued is key here, as well as the fact that home consoles were largely Japan's territory before, even in the West. The market changes, and so do the goals and expectations.
The comparisons I see people usually make are full of flawed reasoning from the start, making them one-sided. Does it make sense to compare the output of all Western countries combined and/or their markets to just Japan ? Why is Nintendo regularly excluded in the discussion ? Is Metacritic actually "fair" to Japanese developers when its reviews come largely from the West, with little to no representation from Japan or the East ? What about all those unlocalized games ? When you consider all this, Japan's situation is hardly as bad as some make it out to be. In fact, the sole idea of comparing them to the West combined actually says more good things about them than anything.
Goatseye said:
I never was a fan of JRPG or anime type of games (Manga etc...), anything that fell into the archetype of anime I swayed from it. But, I like games like Tekken, Virtua Fighter, Ace Combat, Pro Evo, Street Fighter pre-cartoonization, Pokémon etc...
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I would also like to mention something here, which is a recurrent issue I find irritating... (nothing personal though) Anime and manga are two mediums representative of Japanese culture, which encompass a wide variety of genres and styles. While you can point out certain characteristics that are common within them, you can't reduce them to just that, as there's many examples that break the mold. Because of all this, speaking about "anime/manga-type" of games doesn't make much sense, as it doesn't say anything specific about them. It's the same culture, with a lot of its individual talent being shared between all three mediums. Other than realistic sims or other games that deliberately try to imitate Western troopes, it's unreasonable to expect them create things outside the anime/manga spectrum.
The thing is that, technological advances have made cultural elements in gaming more evident than before, which makes those who aren't familiar with them feel the difference more than ever before. I suspect this is why you said "Street Fighter pre-cartoonization", even though Street Fighter has always had manga aesthetics. But of course, what separates them from the West is also what makes them unique...
RolStoppable said:
Things could have been very different, if they embraced the Wii, a system where video game values were held up high and thus PC game developers would either not show up in the first place or would be destined to crash and burn. It was a system designed for Japan's strengths, yet they rejected it.
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I agree with this, for the most part. Such a wasted opportunity... Nintendo provided them the chance of a happy medium, between making handheld games and competing with "AAA" Western games. A popular home console with a lot of visibility, without the required high budgets of the HD platforms or having to stick to digital-only games. While they did supported Wii with a few popular franchises and several niche games, there's a lot more they could've done...
If there's something that can severely damage Japan's publishers, it's the idea of competing directly with the biggest Western ones in their territory, not to mention within the same genres and styles. The way I see it, they need to better adjust budgets according to expectations, invest on more localization and distribution channels, stop trying to follow Western tendencies blindly, and embrace their own strengths.
I wouldn't go as far as saying they don't have a "real" PC market though... It's just that, home computers have a very different history in Japan, so they have a different set of values for it. Most people in the West are not aware of how rich the doujin (Japanese equivalent of indie) scene is, and of course don't care about visual novels in general, which have a big presence there. Then, you have the recent MMOs and browser games, which we rarely get.
By the way, this reminds me of a great article from Hardcore Gaming 101 regarding the history of Japanese computers and their games, which gives a good idea of how they got to where they are now. Here it is. I think it's a must read for any fan of Japanese gaming.