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Japan's inward game development woes [update 1]

In an interview over at the Lost Planet Community blog, Lost Planet's very own producer Jun Takeuchi talks about how game development in Japan has changed ... for the worse. He's referring to how Japan's video game developers have isolated themselves, refusing to cater to the western audience, and ultimately using once big franchises as a crutch. Takeuchi goes on to say "western developers borrowed and learned from Japanese developers all those years when Japan was ahead" and that now "Japanese developers need to learn from western developers". He goes on to say that Capcom is already trying to adapt to a more worldly view, looking at games as an all encompassing form of entertainment. Do you think Japanese developers need to cater more to a western audience, change up their formula, and now learn from the student (aka, western developers)? We'd like to see both Japanese gamers and western gamers find a happy medium when it comes to eachother's content, but we wonder how different each group really is ...

Update 1: Fixed our source information, sorry Brian Dunn.

[Via GamePro]
[Thanks, Jonah]