To put things in perspective, compare the Japanese nuclear disaster to the video game industry, both are somewhat similar because in one case everything fell apart, and with the Japanese game industry everything is slowly falling apart. Or is it?
Why? Because no one listens to one another and no one communicates when there is a looming problem. It's easiest to ignore the problem because it's not upfront and in their face. This has been the Japanese way for a while, then again some would say this is a worldwide problem. When a problem is upfront and in their face then they have to deal with it. Let's take a look at the statement made by a panel investigating the Japanese nuclear disaster.
Across the board, the Commission found ignorance and arrogance unforgivable for anyone or any organisation that deals with nuclear power. We found a disregard for global trends and a disregard for public safety, the panel said.
If this were a independent panel investigating the decline of the Japanese video game industry, you'd change "nuclear power" to "video games", and change "public safety" to "public interest". Kind of a bold way to put it, but you get the idea.
In Japan, it's easier to overwork or pretend to overwork which is hoped will cover-up the problem and/or make it go away.
Why? Because Japan has old elderly men in charge with old thinking who think their way is the best way.
The U.S. and European sides want Japanese games to work, the old men in Japan don't always listen. It's thier way or no way.
A long time ago some of these old men in charge spent all of the company money on luxury items, hostess bars, expensive vacations, homes and didn't put company money in the bank to invest in their employees, new trends, and new development technology.
Another factor is that Japan doesn't have the investment money that it did back in the 1980's and 1990's. That money is gone because of the overall economy, the growing expense of technology, and overspending on stupid things like the ones mentioned above.
However, some of these old men (not all) are getting smart and are now opening up, starting to listen because they can't rely on the Japanese domestic market anymore. Some of them are panicking by copying the west, some are staying smart and are coming up with original ideas (the latter is the smart move).
You know what else is sad? Japanese game and toy companies have been putting the "Declining birthrate" as just one of the reasons sales are down.
Why? Same reason as above. No one is having sex in Japan, because everyone overworks and exhausts themselves. There is no time or energy to communicate with another human let alone have time for oneself. Therefor no one has the time or energy to maintain a relationship, get married and fuck. Pretty depressing. The anti-depressant or heroin to take away the pain has been the "kawaii" and "idol" singer culture that pushes people to "ganbarre!" and keep moving forward - plain and simple. Everyone is going to die alone into oblivion with this way of life. This is why no one has time for online offerings or interaction online. This culture is almost pushing a learned form of autism or a push into social anxiety where no one talks and no one speaks up. Pretty sad really.
It's not always like this. There are some people who hate all of this, see the problem and want to fix it.
This is what Inafune means when he says: "Japan has to change their way of thinking".
Why did Inafune leave Capcom? Why did Keita Takahashi leave Namco Bandai? Because they were tired of the large bureaucracy, corporate bullying and orders. Many others have quit altogether due to stress, exhaustion, nervous breakdowns, or (gasp) actually getting paid better in other forms of programming or design.
These guys will lead the way and take the secret of their success (creative freedom and a new evolving way of thinking) with them. So let them I say, let them lead the way.
All of the other big corporations, (Sega, Capcom, Square-Enix), are pouring water on a nuclear reactor that's not cooling. The meltdown has already come for some, and it will soon arrive for everyone else that doesn't communicate, evolve, find ways to work efficiently, and act fast.
These are all problems, but it's my hope they can be recognized, fixed or changed quickly.