*Note: This article is primarily concerned with arcade and console video games, and not the computer video game market. Thanks.
To make a long story short, video games were originally dominated by American companies. Then Japanese companies got a piece of the pie and then eventually dominated the whole market. Then American (and European) companies slowly came back and now they totally dominate the world console market.
In a few short years the Japanese have become shells. I’m not going to say they’re totally useless or anything stupid like that but they’re really repeating themselves (New Super Mario Bros. Wii, Super Mario Galaxy 2, Street Fighter IV), making mediocre sequels (Resident Evil 5), or just ruining their classic series (Metroid: Other M, Sonic Unleashed).
The last new idea from Nintendo that I liked was Pikmin, which is now 9 freaking years old! Most of the games/series that I’ve enjoyed the most from the current generation have been Western in origin: BioShock, Fallout 3, Grand Theft Auto IV, Red Dead Redemption, Half-Life 2, Batman: Arkham Asylum, etc. This is strange for me to admit because I’ve had a strong bias for Japanese games since I was a kindygardner.
My recommendation: ritual suicide for the entirety of Japan.