It looks so bad that it hurts my eyes.

It just does not appeal at all to a lot of people. In fact, a lot of people despise that kind of art style.

i dont get it why?? how does it look bad??im sorry im no artist or anything but i see nothing horrible with them. I watched DBz, naruto, Gundam Wing, Bleach etc as a kid and i enjoyed them very much and saw absolutely nothing but stunning visulas. Your logic confuses me

I have no doubt that you really don't get it. I am not going to tell my opinion why anime looks bad. Instead, I will show a picture which explains a lot:

And that is not even the worst anime style which I have seen.

hey phoenix Wright!! i love that game ahah. Oh im sorry u were gonna show me something bad right???? ummm where is it?? o.O

We get it, you don't like Anime.  How about you take your own advice from your signature and stop trolling this thread about it.  You aren't going to change anyones tastes.

Cool. Then get that I am not the only western gamer who does not like anime. It is not trolling, it is just a fact.

For me it isn't necessarily that I dislike Anime for its art style... its just that a lot of Anime is culturally influenced.  The first time I starting digging into Manga I would see a normal looking teen character suddenly go on a rampage and alter in appearance so that the character looked like a characature of a screaming little kid, all head and mouth, etc.  That sort of thing completely distracts from the story and suspension of disbelief for me, but Japanese consumers have typically appreciated it.

I remember asking a friend who's really into Manga/Anime about that particular approach, and he said "isn't it great?  You really see the character's emotions."  As someone who writes western fiction on the side, that flies completely in the face of the concept of allowing a viewer/reader to draw his/her own conclusions from hints and clues presented in body language and dialog.  It seemed like a very immature and simplistic way of communicating something that should be done more subtly, but then I began to realize that it was more of a situation where there were Japanese cultural factors that made this specific technique appealing to that audience... as well as the fact that people in Japan had grown accustomed to it.

So... I don't care much for most Anime (or Manga for that matter), but I fully accept that someone in Japan likes Anime but might not enjoy reading an issue of Batman because it has a lot of American cultural aspects built in.

I really believe the answer is for Japanese companies to shift to techniques and stories that appeal to broader audiences... and I believe the Japanese are beginning to tire of Anime due to the simple fact that they have been saturated with it.  Nothing lasts forever.  Perhaps it's time for them to move on to other art forms, and the Japanese game producers might need to move along with them.

Well first of all, you can't really compare Anime to Comics.  I know its done all the time, but the two mediums developed completely apart from each other following the 1950s.  And yes, there's reasons for various Anime style being overly expressive, but not all character designs and styles are the same.  Akira Toriyama's works (Dr Slump/Dragon Ball/Dragon Quest/Chrono Trigger) are not the same as say Shirou Masamune's works (Ghost in the Shell/Appleseed/Real Drive).  Anime has just as many distinct styles as western comics, which don't even hint at overly expressing emotions.  Some are even overly downplayed and seemingly trying to contrast the Anime norm.  And harking back to your example with Batman, there's been a myriad of different styles for Batman over the years, ranging from completely simplistic to 'gritty' to overly expressive and with big huge eyes and mouths in a western style (take the art style of Bruce Timm for the Harley and Ivy series as an example).

Still, there's bound to be people who just don't like one style or the other.  I still say that in reference to this topic however, that is not the reason why games aren't selling.  If that was the case, then games wouldn't have sold well over the last 15 years.  Or heck, games like Final Fantasy, Soul Calibur or MGS would be unpopular.  They have EXTREME anime influences, not just from their character designs but their storylines and character interaction.  The underlining problem is not 'people dislike Anime', its something else.  And as I said before, I tihnk its because Japanese companies have taken advantage of their previous high sales and skimped out on marketing and spending the time/money to make good localizations.

There are way too many games around as it is... I don't see many Japanese developers gaining much by catering towards western taste, not enough to compensate for the loss of the Japanese audience.

Personally, in the case of JRPGs, some new minor elements will be fine, but I seriously don't want them to turn into WRPGs or even just have Western character designs.

Good or bad, companies need to cater to consumers.  It really does sound to me like Japanese tastes are changing.  If Japanese gamers start to buy more western-produced games, then the Japanse-targeted game sales will suffer... there are only so many Yen to go around.

I know this is anethema to people who have fallen in love with Anime, but it is what it is. :-/