I think the problem is the we've been seeing the results. The Japanese market is shrinking, Japanese developers are going bankrupt, and the majority of games that people care about are coming from US or Euro developers.
Does anyone care about The Last Ranker? Capcom's sinking all this money into making an AAA level rpg for psp. The staff are big name people in every field (FF writer, Etrian Odyssey game designer, KH composer, BoF/DMC artist). But for the most part the game is irrelevant. It'll sell 50-100k in Japan, sell 10k in the US, 10k in Europe and end up being a huge waste of everyone's time on the development team for the last 2 years.
Even Peace Walker is going to be the lowest selling MGS game.
Xenoblade isn't even coming to the west it looks like and the sales will probably doom it to being the last console budget rpg Takahashi ever makes.
This PS2 quality AAA tier games on Wii/PSP/DS model...isn't working. So we either get super low budget stuff that is profitable or Jdevs going out of business.