There was a blip during the PS360 generation where western devs were thriving and Japanese ones were struggling.
Franchises like Resident Evil, Final Fantasy, Devil May Cry, Silent Hill, Tekken all struggled in this era while Microsoft, EA, Activision, Bethesda and Ubisoft all brought out some top games.
Wow have the tables turned, Japan is pumping out great critically acclaimed games while western AAA is in the toilet.
Now Nintendo, Sony, Capcom, Square, FromSoftware, BandaiNamco and a few indies are carrying the industry.
Can’t remember last time I bought anything by Microsoft, EA, Activision, Bethesda and Ubisoft, they largely produce shit now. Apart from Sony’s first party stuff all my PS5 and Switch games are Japanese.