The rest of you unwashed neckbeards, have no fucking clue whatsoever on just how bad things had gotten in the late 90s on the PC market with amount of conflicting hardware. Back then everybody with a bit of sense was running to the console market to save their business, because it was no longer financially possible to technically support all the myriad PC configurations.
It is a factor. Then with retardo-API's going to hell was fixed, and with middleware becoming much better recently it was more or less fixed.
Slowly we witnessed a change of discourse within the western gaming journalism that climaxed with the release of the 360; suddenly Japanese titles weren't received as glowingly, the journos started to push a very visible agenda of Japan lagging behind in quality and "innovation" while praising the "innovation" of western titles (all of them being dumbed down versions of the titles and genres you already know, showing that these "gaming experts" don't know shit).
The problem is that Tojo games stayed in shit place and refused to go forward while western devs actually experimented in the casual-bait-direction.
Tojos thought that the "it's like X but made in Japan" marketing will carry them until 2011 or something like that. I'll remind you that they've tried to sell Dragon's Dogma to Skyrim crowd right after Skyrim was out, it was a retarded marketing strategy, developed in times when the good western titles on consoles were still shit because they were dumbed-down PC games.
DD was a "moderate success" with like 2 millions units sold(including re-release). Meanwhile shovelware Sniper:Ghost Warrior racked like 1M because of the release being perfectly timed, probably costed 10% of what DD did. That's the difference between shitty business and good business. Japanese video game publishers couldn't do good business for the entire 7th gen.
The industry has changed during 7th gen. Games became even more expensive to make, that's the most important part of it. Tojos were making games like they've used to but:
- their cost was much bigger
- their user base didn't grow
- their corporate structure didn't changed, neither did their work organisation(so the efficiency of their business)
- Sony entertainment was loosing tons of money already, so they couldn't subside them anymore
The 7th gen set up the conditions where you either went full casual or stayed niche, without trying to compete with the big players head-on. If you didn't, you ended up like THQ. Tojonese didn't and almost ended up like THQ, but had get out of jail free cards at the ready - Sega had Creative Assembly, Relic and whoever makes Football Manager, Capcom had Street Fighter, Square had ex-eidos, Konami had PES. Of course companies like Koei were niche from the get go so they've never noticed it.
Right now they're pulling out and focusing on mobile, because they still have better budget than your mobile developer of choice, so it'll be easy for them to dominate the space, without having to reform their corporate molochs that caused them to step down from home entertainment devices.
Meanwhile less mainstream pubs like Bandai Namco, Koei and other shit will continue to flourish on those markets because they weren't retards, otherwise they would go down during the Tojocaust that was started by Sony being unable to subside another retardo Tojonese studios who got 100% reliant on their money during 6th gen.
The actual innovation doesn't matter here of course, it's a matter of appealing to new audiences or improving your structures and efficiency.
And I don't fucking mind Tojo devs/pubs getting smacked in the ass because infesting games with their cinematic bullshit and QTE's is good enough reason for that punishment.