They have had a rough last couple of years. Hellblade 2, Starfield, Suicide Squad, Avatar, Alan Wake 2, Redfall, and several other western games have been mediocre at best, awful at worst. Indie games are not what most people play or want to play. Mentioning them as things people should play when people simply dont have any interest in those genres makes no sense.
There have been some great ones recently though. BG3, Helldivers 2, Spiderman 2, Star Wars Jedi Survivor and GOW Ragnorak are fairly decent games. But they are the exception not the norm. Sony studios led the way for many years in the PS3 and PS4 gen, and they have kind of dropped the ball this gen which is why the sentiment that western games are bad is worse than before. When the most celebrated publisher takes a hit, its bound to create a chasm. Something MS studios and third parties like EA, Ubisoft and Activision failed to fill.
Meanwhile, japanese studios have been fairly consistent. RE4, Zelda BOTW, Elden Rings, Armored Core, Dragons Dogma 2,Final fantasy 16, FF7 Rebirth (Though i hate this game personally) have all been received rather well compared to other western games.
I think people are just waiting for a true AAA experience from their favorite developers. I dont care what anyone says, people like what they like and they like Rockstar games, Naughty Dog games, Bioware RPGs, Elder Scrolls games, GOW games, Fable, Tomb Raider, Max Payne games, and well most Sony first party single player games. once they start coming out next year and are even a least bit competent like GOW Ragnorak and Spiderman 2, no one is going to care about Japanese games other than some Nintendo fans who really like their own favorite franchises and the anti-western sentiment will improve.