I play Nintendo and PC Games.

Korea for them MMORPGS!
Japan for them Console and Handheld games!

No big games are developed completely within one country. Pieces are farmed out all over the world. Just read the credits at the end of any AAA title....

I'm actually a bit surprised, but I'm leaning towards Europe here. It's a tough question though, because it's hard to measure 'who makes the best games'.

Yet most games still have one main studio working on them, and that studio is primarily based in a single place. Development isn't completely distributed just yet, and probably never will be because efficient communication is vital to any project and becomes harder to do as distances grow.

I agree.  But, it is still a fact that developers from more than one country work on many, if not all, AAA games these days.  

Well North America in this case, because they're not afraid to waste huge amounts of money.

If we include indie, AA, and handheld; then Japan powns the USA and it will probably remain as such for many years.

Metal Gear Solid 1-4, Persona 3-4 and Yakuza 1-5 have the best videogame-story ever. And many awesome characters are from japan :) And I love the philosophies and ideas of Hideo Kojima. For me the best videogame artist. i vote for japan(ese) (games) : )

So... we are comparing two continents to a country?

OK... still, Japan. Monster Hunter and Smash Bros. are so good that the country reigns supreme.

Disregarding handhelds is disregarding a lot of games that I care about :/

But most of the games I care about come from Nintendo, Square Enix, Atlus, Bandai Namco and Marvelous.. so yes

The Battlefield franchise is (primarily) developped in Europe.... DICE is a swedish game studio lol.

For me it's Japan.