There is little doubt, I think, that Japan is still very isolationist in nature and that they are, generally speaking, a bit condescending toward other cultures. A lot of the manga I read, even serious, well-written works, will have very cliche and stereotypical foreigners in them. It's kind of jarring at times.

I think the same thing happens with Japanese game development. They try to appeal to western gamers but the idea they have of us in their heads is several degrees removed from reality. It especially ends up as a bit of a mess when they try to appeal to both audiences in the same game.

I'm going to disagree with him about Sony, though. Yoshida in charge of World Wide Studios and Cerny working on the hardware over in Japan, those have resulted in huge strides for the company. Even with Japan Studio, they have western developers over there in management positions.

Nintendo, on the other hand, both does a great job and a horrible job. When it comes to games, they understand that people are people and that trying too hard to appeal to each market is not necessary. Keep it simple and you can reach both without alienating either. It's on the business side that they've failed to understand the west.

Western games appear to be gaining in popularity over there, however, which I think is a positive.

I wish Nintendo would come around, and learn not to pander to the smaller Japanese market, over the west.

and that's what we like about them

I think people just need to travel more in general.

while true, that's painting things with too broad of a brush.

IMO videogame development everywhere have a lot of issues. Though, if you want to paint a broad brush, Japanese Development issues are different than Western Development issues.

my favorite games of the last 4... and they're not really farfetched for anyone to think they're the best games each year....

Dark Souls 2 (Japanese)
Super Mario World (Japanese)
Deus Ex (owned by japanese studio) (Though Dark Souls, and Dead Space 2 are very close) 
New Vegas <--- Not Japanese.

and US media doesn't?  Pretty much every asian are stereotypical asian characters. 

Ofcourse Japan's foreigners are stereotypical in their media too.

Having lived both U.S. and Japan, and being half Japanese.
Both places are pretty terrible at this. Japan is probably worse imo.

Well, I don't get why Japanese developers are changing their games to appeal to western audiences... Isn't what made their games great was cause they made games they way they knew how to make them and not trying to make them in a different way? Like, yes, NA and EU are big markets but when you go from FFVII to FFXIII:LR or RE:4 to RE:6 and etc, not only have you lost what made them great games and made your company such who they are but the sales are also not as high as it was expected... Like come on...

I think the perfect example really is Nintendo cause they havn't really changed their ways. Sure they create new ways to play their games like Galaxy, Sunshine, 3d World and etc but the core formula is still there which is why many people still love their games... Sure the wiiU is doing poorly but I doubt its cause their games are bad. If Nintendo made 3d world for the ps4, i am sure people would eat it up like crazy... Whatever sales the wiiU gets and will get is soley based on the people that love Nintendo games and people love Nintendo games cause the core formula is still there... Nintendo's first party still sells well than most of the first party in any other consoles even after all these years

I think the problem is that they are trying to hard to cater towards western audience and forgetting what made them so unique.

Exactly.
If they don't concern about western type of games that much, they'll pull out great games. Instead of throwing an entire franchise into garbage.