Moe Station 5

Ban cellphone games, improve the Japanese economy, and get rid of that tax hike.

Obviously unrealistic, though. If we talk about something we can actually see happening, I would say it would require some kind of innovation or some kind of trend to be set for buying gaming consoles.

Reduce AAA games budgets. Remember a time when Final Fantasy, Metal Gear, Resident Evil had the biggest budgets? This won't happen anymore. Today, which japanese developer can create a game to compete with GTA V or Destiny budgets?

That might get developers to save some money, but how exactly would that boost hardware sales?

They can develop and release more games at less time, like they do in mobile/portable gaming market.

Directly:

1 - Make bigger houses there so they actually have space to live in their homes and thus can invest on consoles.

2 - More awareness from the Japanese to the hardcore videogaming rather than to smartphones, tablets and social networks.

Through better software:

3 - More open minds to western games, which have increased in quality compared to japanese games over the last decade.

4 - More effort and intelligence from japanese devs in order to create better games in feasible life cycles.

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