I don't know about how well the Japanese industry is doing in general, but I always hated how people would say that Japanese games are always better than games from other countries. There are a lot of good non-Japanese games, and a lot of crappy Japanese ones.
Oh yeah, I'm sure there are quite a few good non-Japanese games (and same goes for crappy Japanese games too). However, from my experience, the Japanese games happen to catch my interest much more often then the Western ones. Honestly, I haven't seen that many good-looking Western games lately. All I've ever seen the West make (that does well) are either FPS games, racing games, sports games, or GTA games, and none of those exactly appeal to me. If they do make another type of game, it's either not well made or just doesn't appeal to me at all.
That's not say I don't think the West can make good games. Sonic the Hedgehog 2 was a really good game, and that was made almost entirely of with staff from America (the only people who worked on it from Japan were Yuji Naka and the composer). However, again from my experience, Japanese games appeal to me much more often then Western games.
_________________ The Local Video Gaming Lunatic
Recent stuff I'm into:
Watching: A Certain Scientific Railgun (ep.14, stalled), Hoshi no Kirby (ep. 71, stalled), Nazo No Kanojo X (ep. 8), Acchi Kocchi (ep. 8)
Reading: nothing
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