Honestly i'm gonna just jump into this hot water for a bit and provide a bit of perspective, because largely the posts on this thread i've seen clearly shows alot of people are talking about directions without ever even lived or visited Japan. Here is one to people who are wondering "hmmmm... why are they still developing for handheld etc...": <Background> Currently the upper echelon of the rich Japan corporate is very very nil, while most people do not have the dispensable cash to make "casual" transition from handheld to PS4 simply because of the cost. Plenty of the adult working class lives on a ~500USD equivalent budget per month.... that includes rent, while living on conveni bentos and foods (where do you think Hawaii got that culture from?) and live very far from the Tokyo city in Yokohama, Setagaya, Chiba, and as far as Okegawa in Saitama. These are the majority "market" or potential buyer population with purchasing power and the interest to do so... etc etc. <Market> If you have lived in Japan, or just Tokyo area, for at least a month you'll be very sure to know that most people play games during their "off" time riding the train for ~hour or so to and from work on their smartphones. This is why the mobile games are immensely popular, the current popular trend there is the co-op jrpg and co-op idol games on mobile. Just the fact that the culture/living space/life in general are completely different and do not favor the sit down play games for hours on a long story, they get that stimulation from LNs and WNs... on their smartphone. Oh and their arcades still is a force to be reckoned with in the Japan gaming industry, as it influences a lot of their fundamental game-play decisions in the development for many companies. <Competition> I think alot of people do mention about sales and money be the a critical factor in their decision making which is completely true, i've addressed this in another thread that one of the reasons they have Chinese import faster than western or ww import is because they pay premium price for the license. scary real life example: Similar to the housing market in California West Oakland where you are going to a open house and bidding on a 900k USD 2000 sq. ft.(~185 sq m) house with mortgage, and mainland Chinese couple in their early 20s comes in... and in 13 days of bidding war...out bids the house at 1.9mil... with cash. TL;DR: China has a lot of money for Japan gaming industry to cater more to that market.