As the current and future world supplier of animu VR porn, they're not going anywhere.

Also why would Japanese developers need western audience to sustain themselves?

Uhm. Nintendo isn't going anywhere, and they're basically all Japanese.

Atlus I don't see leaving anytime soon.

Same with Bandai Namco

Same with Square Enix

Same with Capcom

Same with Koei Tecmo


There are so many Japanese companies that do perfectly fine.

This thread didn't do a very good job at flame baiting maybe next time

There are enough people in Japan that buy niche japanese games, nevermind the western gamers that also buy them.

Most of those small Japanese devs develop games with low budgets and low break even points.

I don't think they're going anywhere, but those who have universal appeal, like From Software with Souls, will do much better.

Japanese are dying (video games, economy, culture and even population...) saddly :(. They just simply can't complete with the Western games since just think about, Beside Metal Gear Solid V and Street Fighter V what are the hottest/must-buy game out there dat can go head to head with Star Wars Battlefront, FALLOUT 4 !!!, The Witcher 3, Arkham Knight, Halo Guardian, No Man's Sky ???
Not to mention dat PC gaming is more popular than ever, and Western own PC gaming (Microsoft, VALVE/Steam, League of Legend, Dota, Modding communities, etc and etc)
For so long i have been spamming Sony websites to support their own roots (Japanese games) instead. But i think i can some what understand why they changed their focus toward the western and more worldwide audience rather their own country.
But Japan should not worry about Western, they should worry about China and Korea. They could possibly be the next big thing in the gaming world since they're already dominating the Esport XD!

Oh and don't get me wrong, i love Japanese games and company[s], especially Sony. But everything must come into an end in some point.

There's plenty of people in the states that play japanese games. Why else would Japan bother to port games if that wasn't the case? Some people assume that because japanese games weren't around that much last gen that somehow those games won't be ported this gen. They're wrong. Japanese games sell well on playstation consoles and the PS3 did fairly bad last gen so many japanese devs didn't bother to port any games over. With the PS4 selling like it is, we will see the rise of japanese games again in the states. I sure as hell will be playing them.

Considering I keep seeing sequels and spin offs of my favourite Japanese franchises or new IPs by favourite japanese devs while western studios keep shutting down or IPs get axed because expenses surpass profits brought in by even millions of sales, yeah I'd say they're fine.

Japanese don't demand cutting edge graphics all the time. Sure a game like Final Fantasy couldn't survive on Japan alone anymore like it did before and still keep the cutting edge graphics. Many franchises have successfully gone handheld or even mobile and survived just fine in Japan. They have cut their costs and in some cases the sales have gone up. The market has already adapted to this and will continue to further adapt.

Yeah many here have covered the topic. Japanese publishers/developers have adapted to their paradigm. Usually games that appeal more to the japanese market and niche western market will have more modest budgets.
In the end whats important for a company to survive is to make a profit. They dont need to go with huge games, huge advertisement campaign, huge micro transactions and huge sales to make a profit.

In all honesty, western publishers tend to run greater risks because of this. This leads them to make few new IP's and mostly sandbox and FPS that releases in a yearly basis to have a steady stream of income. Ubi soft for example, may get in trouble if the AC series sales take a serious nosedive. More modest developers take less risks by having several but more modest games. Namco is a good example of that. They make alot of modest games. If one of them fails its no problem because the loss wasnt huge and 5 others did good.
For a western company when one of their games fail, its a massive drama.

So, no. Don't get fooled into thinking that there is only one way to tackle the market that is correct.