Japanese developers are still in denial about the state of their nation's industry Keiji Inafune, head of R&D at Capcom has told VideoGamer.com.
"I feel that many people in the industry are still living the glory of the '80s and '90s, so they don't admit that there is a problem to start with. However, looking at the domestic market, it's shrunk. Therefore it's really important that we realise that we're behind the Western market now, get humble and start learning what's going on. Otherwise the Japanese market is going to disappear completely," he said.