For years we've been hearing the opinions of various Japanese game developers saying how their native companies aren't competing with the West when it comes to game technology and innovation. Some blamed the lack of sharing technology; some just blamed it on tunnel vision. This has been going on for a long time. Even before this, the Japanese gaming market had been shrinking (blame cell-phone games) while the European market has grown. In today’s gaming ecosystem how large a share does Japan hold?
If you are making less money locally than abroad you are likely to invest more in making sales overseas. The Japanese are quite good at this had have been for decades. That was the entire purpose of many companies including Sony and the Walkman, sell to foreigners. Regardless of what a small percentage of knowledgeable enlightened gamers want, the masses win.
Games which are so good the west also wants to play
Are talking about the people who bought Dragon Age because of the punk song in the commercial without knowing the game played like an old school RPG? I definitely think quality games can sell everywhere, and there are many examples of this still to this day. However, I acknowledge no matter how much I enjoy Orta or Bayonetta, the next American guy may thinks it's too Japanese and instead prefers Halo or Darksiders.
Good News! Fighting games are doing very well internationally right now, and we know where those games are made. J-RPG’s have a long history and have a long future ahead of them in my opinion. Just yesterday my nephew was too preoccupied with his DS and a J-RPG to play a game of MTG with his uncle. I’m sure his buying habits are skewed for life, he is a repeat buyer for Bakugan, Yugioh and all those Jazzy- Japanese card games.
Personally, I want the Japanese to give me more East and less West. As long as Capcom keeps churning out the fighters, I'll let Lost Planet slide. With the MvC franchise I think the Western mix of characters created a synergy that can't be matched, not even by SF vs Tekken.
And while the Japanese are dabbling with genres typically crafted by Westerners I see fresh spins on tired genres. Vanquish would be a good example, I don't think I've played a FPS with a boost-cover mechanic like that at all.