No there is still the X1

It'll save Japan!!!

Of course not... The iphone and the Galaxy S are gonna be the last biggest video games devices in Japan!

*died a little*

Nope. The 3DS successor will be big there too.

Just because the game market has regressed doesnt mean its dead. The console market (in general, not just Japan), is waiting for the next big innovation for gaming. Mobile will not provide that, however it is cheap and convenient so they're going to use that.

3DS is not innovative. It is too much like the DS. The Vita is fine, in Japan, but in the west it is just a half PSP/half tablet Frankenstein and people feel they already have the best of both and wont buy it. The PS4 is fine, but it lacks what is needed to push gaming forward. The X1 had potential but it fell short. The Wii U is just not what the market wanted, but may be a step in the right direction.

Truth is, until we get the next Wii or PS2 in terms of how it'll change gaming, the market will remain for the most part, disinterested. That next innovation seems to be VR, which is a fair bit away. I fully expect a regression everywhere until the market has a reason to own a new system, and right now the market has no reason to invest into sequels PS3->PS4, Wii->Wii U, 360Kinect->X1, DS->3DS, PSP->PSV. The market wants something new similar to the GBA->DS, or the GC->Wii U

Nintendo's next handheld might do well there, and the console too if It's a hybrid.

The DVD player was a pretty huge deal...I get what you are saying though, but a "better graphics box" was more of a big deal in the past than it is now. I have spoken about diminishing returns and the plateau of graphics for a while now (even if some people still disagree) and I firmly believe that it is much less of a selling point now than ever before. Innovation is necessary but difficult and risky...

The 3ds may be the last big handheld there, but the vita certainly cannot be called big there.

I completely agree. The ps2 was a MASSIVE leap over the ps1, the ps4 and x1 are a small step in on screen performance over the ps360. That's why games will be cross gen for a long time, the old systems can still replicate what they are doing on the new gen. The ps360 still look pretty good too.

Final Fantasy XV and Kingdom Hearts III are guaranteed to move a ton of PS4s in Japan, enough that it too will probably become a major video game console there.

I think the DVD player was a massive draw for people. Rather than choose which console to buy, if people wanted a new console and a DVD player it made sense. I don't think the DVD player can be discounted when talking about PS2 sales.