It's because they still are trying to do what worked 10 years ago.  That's why we call them JRPGs instead of just RPGs.  It would be cool to see them to some new innovations.

First person shooters, modern RPGs, and even practically the entire indie market are predominantly Western developers.  And that alone is 60%+ of the industry right there.

I love Japanese games as much as anybody.  But it's mostly because I grew up in the 80's and 90's, when the Japanese gaming market was the King.  Now it needs more variety!  The market became over saturated with generic JRPG's in the early 2000's.

For god's sake I hope they do. The large majority of my games are from eastern developers.

And I've been very pleased with some of the games Japan has been putting out. Just as an example, I'd take Valkyria Chronicles over any stale western fps/3ps anyday: they still manage to make some very unique and fun games.

the way thee game is played over there really does need a re invigoration. Partially because the market is swamped by jrpg's and that the only notable games that come out are from established giants (I'm looking at you Square Enix), but either way so long as there is a character with a voice with a higher pitch than a hamster on helium in every single one I think I'll have to say I agree.

not suprised, about the only games from japan that come to the US are JRPGs and nearly ever western RPG can kick their ***, every once in awhile they'll release something good but that doesn't happen enough

Nintendo...please do your magic soon.

That market is failing because they are being stubborn. They refuse to evolve their games and designs and nobody wants to play them anymore. How many of you truly want to play another Jrpg where you are a boy who wakes up without any memory and then needs to save the world with a group of misfits?? Honestly, they refuse to change and the western audience wants nothing to do with them anymore.

All of their characters look the same.
All of their voice actors sound the same.
All of their stories are the same.
All of their games play the same way with minor differences.
They refuse to admit there is a problem.

Obviously this is not the rule, and original games do leak through from time to time. Just not nearly often enough.

Some may say that the West suffers from the same problem. After all, we release FPS and shooters of all kinds that are pretty much the same. The big difference is that shooters still sell very well and are still in high demand. Here in the west, dedicated Jrpg'ers are becoming harder and harder to find. It is a stale genre.

Since he gave his opinion last year, there have been a wealth of Japanese developers that have thrown in their hats and called doom on the Japanese industry.

Even if he has a point, he has really pooped the party. This guy did to the Tokyo Game Show what Kanye West did to Taylor Swift.

I think the Japanese game industry needs to stop only catering to its small audience and recycling the same ideas over and over again and start innovating. Vanquish, Bayonetta, and Dead Rising are all great titles that don't fit the typical Japanese mold, but are still quite awesome and are able to be enjoyed by both western and eastern audiences.

Just loook at Yakuza and its all the evidence you need

Well...the thing is the charcters are always cry babies.

The exception seems to be MGS.

They need to stop catering to pre-pubesent emo tweens,most gamers are aged 18-25 and we don't like cry-babies.

ah man, come on buddy! TGS is looking pretty cool with FFVIII Versus! But yeah, when i look at my old gaming library and my current one, there is SO fewer Japanese games. I still have great faith in Capcom and Square and Sega.

NO! I love japanes games don't quit on us now

Isn' Japan the place were everyone pirates games?No wonder its so bad.