I'm wondering the opposite. Take out the devs from a country of 120m in Japan and we're left with not a lot in recent years. Where the hell are supposed brilliant western devs games at from around a billion people? We should be awash with top quality titles with all this wealth and interest in these consoles and PCs yet I had a look at what people are hyped about and it's Capcom games and Elden Ring this gen. Japan is even more focused on mobile so it's quite something to be pretty much them providing the entertainment.
Japanese media, anime and games far outclass what America is putting out these days. I usually avoid anything American / western made - tv, movies, action hero films etc - i did love Wonder Woman and ZSJL - and there definitely are some games / shows / movies out there that are really good. i mean look what netflix did resident evil lol.
- the bubble burst.
- South Korea and later China produced cheaper consumer products using cheaper labor.
- Japan lagged behind in consumer software, using mostly proprietary software that was isolated from the wider worldwide development community. the PS3 was a highlight of this problem, great hardware that had few people that could develop for it.
- Japan is still strong in professional grade hardware that doesn't depend on trends.