The man who makes Silent Hill sound so creepy, Konami's Akira Yamaoka, has been working with an American team to bring you Silent Hill 5 and as a result, has a pretty unique perspective on how Japanese and U.S. teams compare. His conclusion? The future isn't particularly bright for Japanese houses. "[The U.S teams'] graphical and technical ability is amazing," he says. "There's a huge gap, actually. They're very advanced. I'm Japanese, and I think this is not just with Silent Hill but with the whole of the industry -- I look at what American developers are doing and I think wow ... Japan is in trouble."
He elaborates on the problems, citing too much pressure on aging developers and the language barrier slowing some development. We would have guessed that the troubles would stem from trying to work under the constant threat of ninja attack, but it should be noted that we're not big readers.