Found by way of Joystiq, Capcom’s Keiji Inafune remarked Japan’s games industry is over; then followed up by stating Capcom is one notable exception. Similar to how Gundam creator Yoshiyuki Tomino had said “games are evil”, it’s easy to brush off the Mega Man creator’s comments. However, when looking at the bigger picture,  I think it points to something more interesting.

Using Mega Man and Gundam both as the example, we can see how games have evolved. Clearly there are technical advancements taken into account, but the actual gameplay and method of delivery has changed; you must also not ignore the ever morphing gamer tastes.While it’s simple baiting to say casual games have killed the hardcore genre; I’d argue casual games are now sustaining the industry. The Tokyo Game Show (TGS) may have had a dip in attendance, but saying Japan’s industry is dead is like saying there will no longer be any more Final Fantasies.

There is an ebb and flow in every industry. Consider how newly released Shadow Complex was praised as a classic because of its side scrolling action. In the not too distant future the PS3 Motion Wand will be released and you’ll be playing the next Capcom Street Fighter like you do in the arcade. Standing, frantically moving the “joystick” around for combos. It’s like you’re really there, will herald reviewers on Metacritic. Don’t worry, Japan’s gaming industry is alive and well, the industry as a whole is still finding it’s maturity.