Some guys here are trying really hard to blame Japanese developers/companies for "lack of ambition", lazyness, cash grabs or whatever, but i don't believe they are at fault. Its just not that simple.
Game development is not the same as 10,15 or 20 years ago, there's way more complexity,time, risk and money involved. They are just trying to adapt the best way they can to the changing market, they can try to follow and release high production AAA games with western trends but that's taking a big risk(see Resident Evil 6)even if they make money, its an endless path of wasting budget and dividing their audience.
Japanese core games are simply less supported overall than western ones by the market, even if they make them right, zero chance even titles with big fanbases like Resident Evil, Kingdom Hearts and Final Fantasy brand will sell as much as any God of War, The Witcher and Uncharted, so their option is change the presentation drastically, taking a big risk, not making the games they want or adjusting their budgets accordingly. Some of the biggest Japanese brands like Monster Hunter or now Elden Ring have strictly different presentation than typical Anime(excluding MH spinoffs) Final Fantasy XIV hit the jackpot with MMO though.
Even high quality games like Bayonetta were rejected by most gamers and failed to meet expectations, it simply was too 'Japanese'
On one hand Sony started sucking up to the west and ignoring Japanese developers that aren't as big as Square Enix or Capcom in favor of big western brands, Nintendo is there selling a portable system were the message is you don't need as much risky AAA budget as long as the games are quality, so their audience is fragmented, that's not gonna change anytime soon.
Its not anyone's fault or the end of the world, it simply how the market has evolved, nothing less. Support the content that you like, im anticipating a bunch of high quality games coming soon!