One of the main reasons why Japan has struggled in comparison with the rest of the world comes from the lack of manpower. Studios in other countries can top a hundred, but Japanese studios are still quite small. "That's not the case in Japan. Because they don't have a large base, like the movie industry; there aren't [a lot of people] in the high end of computer graphics. That's making the many great developers in Japan make slow progress."
That's not to say great games aren't coming from Japan, of course. Developers like Kojima Productions and Polyphony Digital have created some real graphics powerhouses on the PS3. Upcoming games from Capcom, like Resident Evil 5, and Square Enix look to push Japan's tech further.
[Thanks, nirolak!]











Ever since Phil Harrison shocked the games industry by 











