Disrespectful and unfair, but just another manifestation of the slow yet inevitable shift in gaming supremacy from East to West.
You only need to look at GameRankings top 10 rated Xbox360 games - each and every one was developed in the West. In fact, from my casual glance it looks as though only 4 of the top 50 games are Japanese in origin (with two of them effectively being the same game in Street Fighter IV and Super Street Fighter IV and another being a port of an old Castlevania game...the other is Bayonetta if you're curious).
Not really.
First, the Xbox 360 isn't very popular in Japan. Because of this, fewer Japanese developers will release games on it compared to the other consoles. As a matter of fact, a lot of this boils down to the fact that gamers in different regions have different tastes. Turned based, single player RPG's have always been popular in Japan. In the west, however, sports, racing, and FPS are far more popular, especially those with a competitive online multiplayer component, for example. As the Xbox 360 is made by Microsoft, an American company, it is not surprising then that it will have more games falling in the latter category than the other consoles.
Perhaps you should all recall what the video game industry was like 20-30 years ago. Originally, there were far more home video game consoles made by American companies on the market back then. But there were was an overabundance of shitty games available, leading to the famed "video game crash" of 1983, and it was then that Nintendo, and later Sega, entered the market in the United States, and managed to dominate the industry for a while due to not only releasing innovative games but also their strict business practices (ie the infamous "Nintendo Seal of Quality").
In short, I don't think Japanese games as a whole have gotten worse. What has actually happened is that the video game industry in the west has greatly matured since the crash of 1983. Many of the types of games that are popular now were once only available on PC's, and thanks to advancements in technology, this is really no longer the case. But really, that doesn't mean that Japanese games have gotten worse, to say such a thing is quite arrogant and near-sighted. They have simply evolved a bit less than their western counterparts. But even in terms of recent games, I would argue that Dark Souls is a better game than Skyrim, for example, as far as RPG's go.
