Japanese studios have mostly disappeared from mainstream gaming and here's why.
"...are all starting to slowly dissolve under the pressures of our changing market." Wasn't this an issue with a lot of Japanese producers a while ago. Weren't there articles from a lot of Japanese designers and producers saying how their respective companies are still stuck in the old ways of game making and thinking and with this new rise of western development could endanger Japanese game development. And sure enough it did. A lot of these Japanese developers just couldn't switch with the times. Couldn't change their old game design ways, cater to outside audiences, or other factors. Western developers took a market that was dominated by Japanese game makers and made it their own (for better or worse depending on what you enjoy). A lot of these well known Japanese companies are going all mobile too. It's like they have given up being competitive now there are other kids in the neighborhood that can play just as well as they can.
You're forgetting one thing: Western developers are in the same boat. We see western studios going under as well. And, the ones that are still here have a shrinking number of titles. This is not a Japanese problem; this is an industry-wide problem.
Developers go under but I am talking about how the Japanese are not the once dominant video game developer nation they once were. I believe this is what this article is referring too. During the Nintendo/Sega era they dominated. We have seen an extreme shift since in the last 10 years. there has been more anticipated and GOTY titles coming from western developers than anything from Japan. And a lot of prominent Japanese company's have not been pumping out the great games they're known for.
"As much as Square-Enix may feel like it isn't doing well, it's actually successful - but at business, not at creation." If they continue to fail at creation (and they show no signs of righting the ship), failing at business is only a matter of time.
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