I'll add that many of them have to make games for their homeland as not only do they not have the luxury is western releases but even if they did the success abroad is often very limited and niche at best.
Those same games are limited and niche in Japan as well. The biggest games coming out of Japan tend to be the biggest games in the west or are trending that way. The smallest games in Japan isn't on anyone's radar, even the Japanese. The whole notion that a subset of developers need to continue with a Japan only model is silly (and not even in droves happening anymore). Its just a line that people use to extend Nintendo's dominance in Japan when in actuality a Japan only strategy is becoming irreverent.