Through a new interview with Yoko Taro, the famous Japanese game designer behind the Nier series and other games, he indicated that the Japanese developer no longer has the ability to compete with the Western developer in terms of technology development.
Japanese development studios did not rely on Western game development engines and continued to use their own engines. It was difficult to move away from that, and our engines were always behind in hardware. Most programming schools still follow the same steps, and we still do not accept the use of new Western technologies. We now see countries such as China and Korea using Western development engines such as Unreal provide major technical advances in their games.