The indie game scene in Japan could definitely use a lot of improvement imo, but with an increase in indie game festivals maybe things will get better. Maybe it's because I don't really follow the indie games scene much, but I've only really heard of Downwell as a Japanese indie game. In terms of indie games Japan definitely falls flat. Is there any Western equivalent to recent games like Persona 5, Nioh, Nier Automata, Gravity Rush 2, Yakuza 0, etc.? I guess something like Torment Tides of Numera.? Even then that's leaning more indie to me. It's in terms of A or AA games that Japanese games completely destroy the competition. It was actually quite surprising to me how little game development is actually done in the U.S. (Horizon is Dutch, Mass Effect is Canada, Dishonored 2 is French, Halo Wars 2 is British, Dead Rising 4 is Canada, etc.).

AAA release is probably last year's COD or Titanfall 2. Recent examples include, The Last Guardian, Resident Evil 7, Zelda BOTW, FFXV. In terms of AAA Japan produces probably about as much or maybe a little more than other individual countries. I can't think of a single other country that even comes remotely close to matching Japan's output. When looking at on an individual country basis Japan still completely destroys all other countries though.

Development budgets have gotten too large for a single country to ever compete against the entire rest of the world again. I think comparing Japan to the West, Japan will never 'win' again.

Torment tides of numera review reddit