The PS3 is the reason for the console collapse in Japan. Consoles were doing fine in the PS2 generation and the PS3 comes out costing an arm and a leg and Japanese gamers moved on to handhelds and cell phones. The PS2 never had a viable successor.
It was the PS3 that was responsible for the downfall of the Japanese gaming industry last gen, but it wasn't because it was expensive.
The Cell Broadband Engine is the reason.
It was a bytch to code for and Japanese developers had the hardest time trying to wrap their heads around how to develop for it. Coupled on top of rising development costs most developers just said fukk it and started developing for handhelds and smartphones.
It wasn't until the PS4 that Japan started seeing a glimpse of hope for the console industry. The easy to program architecture coupled with the Unreal Engine or Unity and next thing you know games are being announced by the bushels. Compare Square Enix Japan's output last gen compared to now.
Take The Last Guardian and Ni-Oh as two more examples, they were announced for the PS3 eons ago and now they're both coming out for the PS4 sometime next year.
It's not yet known how or if this new console game support will spur Japan's ailing console gaming industry but you can't say they ain't trying this gen.
Imagine those Amnesia devs working on a Silent Hill IP? 
Platinum Games doing a ZoE game.
