Sony Exec Notes "Slow Progress" In Japanese Development Japanese game folks have been down on themselves as late. Sony Computer Entertainment exec Shuhei Yoshida is the latest to enter the fray:

The technology base has shifted from Japan to the US and Europe... There are also talented people, engineers… in the US and Europe, and it’s relatively easy to form a large team that required to create this generation of games... That’s not the case in Japan. Because they don’t have a large base, like the movie industry; there aren’t [a lot of people] in the high end of computer graphics. That’s making the many great developers in Japan make slow progress.
Yoshida went on to state that Japanese developed games like Metal Gear Solid 4 are the exception to the rule, not the rule. Yoshida: Games tech power “has shifted from Japan to the US and Europe” [VG247]