Depends on what happens next-gen, how Japanese developers respond now that they know what to expect, and where the Japanese market decides to fall. It was rough for them this gen because they were in a bad spot no matter what -- 360 dominated in the West, portables were king at home, and the Wii was the overall market leader everywhere. No good solution for them that doesn't sacrifice something.
portables actually were better selling in the USA than Japan. Partially because the USA has 300ish million to japans 130, but ya.
Not to mention the vita looks more oriented towards western gamers.
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Currently playing: SC2, Civ 5
Next up: eh ; Awaiting: meh