Japan wasnt making what the people wanted RPG wise. Alot of games just lacked imagination.
Those old JRPGs in the PS1/PS2 era made the Playstation brand. When I see PS3 making these first person American shooters to keep up with M$, I see them 2 sides of the same coin. Sony lost their identity in the console race and just fighting against M$ over scraps.
That is why I to Nintendo for evolving at their own pace and continue to make quality AAA games.