The rise in the number of triple A titles from western studios has really started to eat into the Japanese market, something the home teams are starting to feel.
Capcom's Jun Takeuchi says the increased presence of western games in Japan has him worried, they're "making great games" but Japanese studios shouldn't switch sides.
"I'm worried about the movements of Western developers. Japan is now their target - it's the last big marketplace," Takeuchi tells Famitsu.
"The truth is that Western studios are making great games, and they're going to continue to do so next year too," he adds.
He believes the developers shouldn't suddenly abandon their fans and switch to western-style videogames though. "It's not good if Japanese developers are making games that can't be enjoyed by Japanese people," he noted.
Recently Square Enix has been making major pushes to adopt some western studios to help bolster their future line-ups. Japan's market has always been considered the home to videogames but times are changing.
"2009 will also see Resident Evil 5 finally released, and it'll also then see us on to our next step. We haven't shown what Capcom has in store for 2009 yet, so I hope we can surprise you all soon," he wrapped up.