It all started in the early 1990's with the Soviet collapse and the collapse of the Japanese economy, Sony executives knew that the winds were shifting towards the West and that's why Sony came out on top and traditional minded Sega took a back seat. It was at that pivotal moment when we started receiving a massive deluge of Japanese games with American Characteristics like 'Resident Evil' 'Final Fantasy VII', and 'Metal Gear Solid'.
I don't know the future of Japanese games, but fear of China taking revenge on them after their atrocities towards the Chinese in the 1930's is kinda forcing them into the arms of the Americans even tighter, despite wishing for strategic autonomy. Let's hope for a future scenario where Chinese, Japanese, and American products can be seen as their own unique brands w/o bloodshed!