1) Really? Would you mind linking to the charts in question? In light of your other claim, your ability to interpret data is in question.
However, its possible. Japan's market had been shrinking for years as gamers drifted away, so 2004 being a nadir makes sense. This generation Japanese game developers interested in making full games have turned more and more attention to the West and the X360, whose sales in Japan itself are negligible which is a big change in attitude from them, since most turned their backs on the Xbox.
2) Your second claim is incorrect and is demolished by both vgchartz and Capcom's own numbers. Capcom has stated that the bargain priced RE4 has shipped one million units globally (not a big deal on a system with an installed base of 13 million or so) and vgchartz states that RE4 sold only a little over 100K units in Japan. Of course, Of course, its possible that vgchartz is wrong... http://wii.ign.com/articles/831/831328p1.html
The mid-year release has gone on to ship a million copies throughout the world,
http://vgchartz.com/games/game.php?id=6163
CarnageHeart
1) Well I went to VGCharts yearly Japanese Sales., if you want to you could try this yourself by comparing the total software sales of the PS2 in 2004 with the DS as of current. Then go to the Totals toolbar under Japan and subtracted the first party sales out of each system. However you must remember to factor out the first party sales of the Wii for Nintendo and the first party sales of the PSP for SONY to get more accurate date, especially for Nintendo. If you do this there should only be around 4 million third party sales apart from one another. Come to think of it the DS may not surpass the PS2's third party software sales this year but at least come close it.
Also Japan's market has been doing anything but shrinking in the past few years.
The 2004 yearly hardware and software charts (link) and 2007 yearly hardware and software charts (link) disprove that. The year isn't even over and already this year drastically surpasses 2004 in terms of hardware and software sales. When people say those things they usually imply to the "gamer" market, which I agree with is near death and is now in niche in the land of the rising sun.
EDIT - Upon further thinking, I guess it is possible that there could've been more games released for the DS as of current then the PS2 in 2004. Which really isn't so farfetched since the cost to make a game between the two is so different. As for why Japanese publishers are worried about third party software sales in their country is because even in 2004 they were far lower then yester-years.
2) Resident Evil Wii Edition first week premiere was only 89,000 copies as this link shows. Looking the game Data Base the game has currently sold almost 450,000 units in America with total sales being 830,000 as this link shows. So according to VGCharts my Resident Evil 4 statement is correct due to it selling over 4 times at much in it's lifetime compared to it's first week and it's still on the charts after 19 weeks at number 44 selling 10,000 copies per week. Also I never stated that it sold one million but it's on it's way to one million with it still being on the charts and selling so close to a million before the Holiday season I wouldn't be surprised if it reaches that mark.
But still we must remember that this is VGcharts they aren't really the most reliable source. Especially since they underpredicted Prime 3's sales and overpredicted Eternal Sonata's sales in North America, and overpredicted Final Fantasy: Crisis Cores sales in Japan, I could find more examples but judging from your level and amount of posts I'm sure you yourself have also seen how inaccurate the site can be.
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