eldavojohn writes "As one of the creators of Mega Man, Keiji Inafune remembers the days when Japan redefined video games. He believes those days are long gone as he reveals much in his criticisms of Japan's ailing game economy. Inafune says Japan is five years behind — still making games for older consoles with 'no diversity, no originality.' When asked why, he responds, 'A lot of designers, if they find a genre that works for them, they stick with it. A lot of designers just stick to a set formula. That doesn't work any more. You can't just tweak the graphics, work just on image quality. You can't compete on that. The business side is not keeping up with investment. You need to be prepared to invest 4 billion yen or more on a game, and then spend 2 billion yen more to promote it. But Japanese companies can't do that. So we're losing out to the West in terms of investment in games. It's a vicious cycle, a deflationary spiral. Because you don't invest, you can't sell games, and because you don't sell games, you can't invest.' He compares making games for Japan and the US to Sushi and basketball — two popular things but each done in distinctly different ways by the two nations."