The worst crisis in Japan's game industry is
the lack of human resources in advance programming.
Except Square Enix who r capable of building their own engine (White engine?).
most of the developers in Japan rely on Havok and other engine.
Why?
coz those who interested in this field is mostly interested in Character designing, Scripting and only a few newbies who r interested in networking or engine development.

with so many limitation, japanese game's quality is getting worse day by day, before we start mentioning about the budget.
Less experts in programming field, more time consumption on making a game.
middle house developers simply cannot afford it.