Aren't the sales for those kind of games, actually quitte good on the PS3? Especially in the west?

King of Fighter XII and Blazblue are both selling much better on the PS3 than on the 360, and Cross Edge will probably end up selling twice as much as Spectral Force III (Both niche, both horrible JRPGs). Disgaea 3 sold great too.

Another Japanese niche game what has sold extremely well...

Valkyria Chronicles

Yes that's because the 360 fanbase doesn't like those games as much. Well they do have better sales on ps3.

I think a lot of Sony fans like Japanese games (I die a little everytime I see how few JRPGs are on the system), just as Nintendo fans like Nintendo games, and Xbox fans like shooters.

My PS2 collection was 90% Japanese games, and 10% US/EU. Sadly, this ratio has switched on the PS3.

Couldn't Say It Better Myself

Infamous, LittleBigPlanet, the two Ratchet's and Uncharted are the only western games I own for my PS3, so about 75% of my PS3 games are still Japanese. I'm going to buy Batman Arkhum Asylum, Ratchet 6, Trine and Uncharted II this year though.

Hopefully Katamari Forever and Tales of Vesperia will make it this year to the west.

Katamari Forever is set for late September, unless something has changed.

Plus if Sega won't publish Yakuza 3 in NA, then Sony needs to step up and do it!!

we will see more japanese games on PS3 after japanese developers milk enough on PS2 and PSP.
they haven't even started on PSP in full force yet.

on the other hand, i think it's good for the western publishers take this chance to establish themselves in the Japan/Asian market.