I play and love both western and Japanese games. Skyrim (modded, on PC) and Dark Souls are two of my favorite games last gen.
I agree with you about VC > Skies (is this the same dev team though?) and Souls > Otogi. I wasn't meaning to highlight those as the best examples of what each dev has done, but rather to rattle off a few of the memorable Japanese-developed games of that era.
There are certainly some AMAZING Japanese games out right now - some of my favorites of all time - but there just aren't as many Japanese games being released any more.
Excellent insight, thanks.
I believe the Skies team or probably known more recently as the Sakura Wars team did go on to work on Valkyria Chronicles. Vyse and Aika are in it
Honestly, I think the smaller devs are doing very well in giving us a great selection of quality Japanese games. SEGA, Atlus, Namco, GUST, Falcom and even NIS.
Its the big companies that have resulted in a noticeable decline of quality Japanese devs. I'm talking about Square, Capcom and Konami.
SE and Konami have effectively become like the Western pubs and seem to only be interested in big AAA games. Game output is decreasing as a whole due to rising development costs and way more time needed to make quality games these days. Everyone should accept that. However, one of the great things about the Japanese industry is that there still seems to be a middle tier. Its pretty much gone in the West and has been reduced in Japan but is still there.
Its incredibly sad to see Konami and SE which have so many great video game properties and just ignore them these days. Particularly SE. The glory days of Squaresoft was a golden era for jrpgs.
Capcom is a bit better than those two. In fact a lot better but I still don't like what they did with BoF. I'm still bitter.
Hopefully SCEJ find their feet again when developing on the PS4. I'm sure Nintendo will continue with what they do.