Japan's influence has been wading at the start of the HD era but was the country really that influential after the 90s?
In Japan, Blizzard Entertainment, Valve, etc. are unknown. PC gaming remains a niche. There are a lot of genres that have no presence in Japan such as RTS, MOBA, and MMO. Ask an average Japanese gamer what an RTS is and I'm pretty sure he wouldn't know. In other countries almost all genres have a presence. There is no visible indie scene. E-sport is dominated by Western games. The Japanese market is Japanese centric and most Western games still find it hard to gain a foothold.
Doesn't this bother you that the supposed nation that is one of the most influential in the video game industry has a pretty insular world? No wonder Japanese devs are struggling to make games now that can capture the audience outside of its borders. Of course there will be exceptions like Dark Souls but I'm talking about the majority here.