And I'm going to go ahead and take offense at your generalization of expatriates who live in Japan.
You have much more balls than most, I agree, and my generalization was not strictly intended to cover you necessarily. I was actually thinking of this indie critic... can't remember his site... as well as some other guy on CAG that lives in Tokyo. One of them appears to just have a love complex with FF7, moved there, proceeded to spend his entire life apparently devoted to finding flaws within JRPGs, such that when he finally reported said flaws I'm more inclined to think of it as romantic persuasion finally finding his pre-destined lover wasn't all he thought it was. That's not remotely interesting criticism, that's one man's madness. There's also the writers of Polygon who gorge themselves on a stream of endless visual novels and JRPGs like Tales or whatever, racing to give them 5s and 6s. Meanwhile, meaningless nothing games such as Titanfail rack up the 9s and game of the years. I agree that the quality of the games isn't as good as it once was, but the disparate treatment is incredibly obvious from my perspective.
.Now, is it more likely that people grew intimidated of a gaming genre that has done nothing to grow more intimidating and moved to anime as a safe substitute? Or is it more likely that anime is more popular because there is an access to it that wasn't available back in the SNES glory days and that JRPGs have declined in popularity because their availability has waned and the same formula no longer holds excitement for a wide western audience?
Personally the answer is easy because I'd rather play virtually any JRPG in the universe, even the stuff that was basically kinda crap like Beyond the Beyond or something rather than watch virtually any anime, even the greatest of the greats like Fullmetal Alchemist or whatever. The fact that the hint of an FF7 remake or something engenders whining of overrated and such to this day suggests that many people still struggle with those games on some level. There are maybe like 1-2 anime I'd put as remotely equal to a very, very average and weak JRPG. This suggests to me that anime became more popular at the expense of JRPGs because an increasing number of people had permission from society to accept it. You had permission in 2000 to enjoy FFX, you don't have permission to enjoy FFX13. All the criticisms of FFX13 basically apply to X, a number of weak characters, the excessive linearity, but what changed was what gaming society allowed submissive western gamers to enjoy.
That permission has not yet been granted for JRPGs in 2014 except for random things like Xenoblade, and so they languish, unless of course it's a Nintendo JRPG for some reason (Bravely Default). Anime is not as avant garde as JRPGs for the most part, it provides a 'safer' option because you can trace it's inspiration from western TV or films, the longevity of the medium, etc.
I already acknowledged right around the FFX/Disgaea era I started to enjoy them less. Still, they've been worth playing, even up until the most recent FFs and the host of random games on Vita etc. People arbitrarily dropped them for reasons I don't understand. Xenogears was this kind of hidden masterpiece but hardly anyone played the Xenosagas it seemed to me, which is unfortunate because all of them have very strong points. Additionally, this was around the same time gamers have arbitrarily moved on to PC gaming and non-JRPGs. The fact that gamers stopped buying the last of those greats is partly why there weren't any more of the really good ones. We could of had more Xenosagas, in fact, 6 were planned, but gamers arbitrarily went for the Personas and the cute Visual Novel stuff, so they never got made.
That of course leads to this point
Casualization of Nintendo, not investing on PC gamers and sticking to highschool anime (artstyle etc.) cliches in most of the Japanese games (including PS games) is a let down for me. Only a few like Dark Souls series do it right. Thanks to porting into PC I know this.
Even FF XIII is porting into PC and FF XV will be there soon.
Anime has provided many gems in different sub-genres after 2000 that also are imported to western channels like Cartoon Network. Unlike JRPGs that were finding more distance between these games and western gamers year after year.
The gamecube had a strong library, hardcore gamers abandoned Nintendo and many Japanese games quite arbitrarily, this coincided with the infusion of highschool anime cliches.
Turning around and saying Anime, the source of all these high school cliches, has provided many gems is quite contradictory. Anime has simultaneously destroyed Japanese games by infusing anime-like characteristics but empowered anime with the same exact cliches? This makes no sense. I can't think of any anime 'gem' that isn't constructed of at least 51% cliches. Attack on Titan? Sword Art Online? Gurren Lagann? Cowboy Bebop? Madoka Magica? I'd take any Disgaea over all of them, even if it wasn't as great as FF6 or 7. I certainly wouldn't take them over a Xeno.
Honestly, I think another issue is many gamers have a strong aversion to buying consoles for some reason... even though they are far cheaper on the whole.