Japan video game industry once made up 50% of the global gaming market but now there only 10% of that today or even less. JRPG that was very popular nearly a decade ago when tons of them were being released in the market has shrink with the FF being the only franchise that is truly popular in mainstream gaming while the rest tend to be more niche and less mainstream.
Many critics have blame the lack of progression and innovation in Japanese games as one of the causes. Perhaps Japanese developers did not transition well compared to their western counterpart when it came to the evolution of games from past to present. I see no sign they will make much of a comeback as western made games are still the most grossing in sales and popularity.
I know some of people might bring up the likes of dark souls or maybe even dragon dogma but you know they seem a lot more western than your typical JRPG despite not being a WRPG.