Between Stellar Blade, Expedition 33 and Crimson Desert, the Japanese videogame industry has been invalidated. I predict Japanese developers and publushers will leave the traditional videogame industry and either stick to gacha or like Konami getting into non-gaming related business.
>the Japanese videogame industry has been invalidatedNot for long.
Not really of course. A lot of companies like Nintendo, Capcom, Square Enix, Sega, qureate, Falcom, Spike Chunsoft etc, will continue to develop and publish games mostly for consoles, it's just that depending on the Game, it's not going to be something extremely succesful. Nowadays a popular Japanese game not published by Nintendo, Sega, Capcom, Konami and Square Enix, is one that maybe sells one million copies worldwide...