kilenem said:
I would say it has more to do with the fickle tastes of the Japanese public. At first, the Japanese were making games that they thought the Japanese would love, and the rest of the world enjoyed them too. As more of the world moved into the game development space, they catered their games more to their respective audiences to the point where the Japanese weren't the dominant force anymore. So Japanese devs games aren't as "mass appeal" as they once were.
It seems to me that this is a big part of the problem. Look at the best selling games of 2013 in Japan (from Famitsu)
01. [3DS] Pokemon X/Y ? 3,976,829
02. [3DS] Monster Hunter 4 ? 3,293,312
03. [3DS] Animal Crossing: New Leaf ? 1,730,182 / 4,017,159 total sales
04. [3DS] Tomodachi Collection ? 1,580,067
05. [3DS] Dragon Quest VII ? 1,227,377
06. [3DS] Puzzle & Dragons Z ? 1,005,697
07. [3DS] Luigi?s Mansion: Dark Moon ? 982,737
08. [PS3] Grand Theft Auto V ? 605,882
09. [WIU] New Super Mario Bros. U ? 584,479 / 965,794 total sales
10. [WIU] Wii Party U ? 518,766
Compare that with the chart from the USA (from NPD).
01. Grand Theft Auto 5
02. Call of Duty: Ghosts
03. Madden NFL 25
04. Battlefield 4
05. Assassin's Creed 4 Black Flag
06. NBA 2K14
07. Call of Duty: Black Ops 2
08. Just Dance 2014
09. Minecraft
10. Disney Infinity
The Japanese, for the most part, are playing hand-held based JRGPs, while the Americans are playing console based shooters, sports and big-budget open world games.
I'm not going to risk suggesting which list is better on this forum...