Maybe 2016 is the year the PS4 makes it big with all that Square support. Maybe NX bridges the gap between handheld and living room much more successfully than Wii U did. If one of these things happens, home console gaming in Japan will beat off the slow march to its death. IDK. I'm not sure either is particularly likely but I hope something like that happens. I want the Japanese playing and making console games.
TBH, I'm not really sure that this isn't a problem Japanese third parties created for themselves. Since the rise of Western developed home console games in the west (Xbox into PS3/Xbox360) you've had Japanese companies chasing, often unsuccessfully, the world audience, retreating to niche development for special audiences in Japan, or, more recently, going mobile. In the process, they have stopped serving a general console gaming audience in Japan. Companies like Square seem to be awake to this now, but it may well be too late anyway. Gaming seems to have moved on in Japan. (I mean, even in the 90s a lot of 'chasing the west' happened. Just the west was "open" to Japanese advances more so than now at least relative to development costs, etc.)
The PS3 was the awkward console for Sony, having come off massive Japanese support on the PS2 but Sony has turned that around and PS4 has become the definitive console of this generation in the west. It has done that largely on Western support.
As for Nintendo, Iwata turned Nintendo towards Japan and both the Wii and Wii U were explicit attempts to re-energize Japanese console gaming. Considering that Nintendo has gone into mobile and the rumors that the NX might have closely linked 'brother' handheld and home consoles, perhaps Nintendo has given up on the Japanese living room and has moved onto supporting mobile and handheld in a way that allows them to at the same time provide a home console for the west. Or maybe NX is designed to fulfill the ambition of the Wii U. It seems like it could be targeted towards both and waiting to see how the chips fall. In any case it is Iwata's last gamble for Japan. Who knows where Nintendo goes after Iwata particularly if NX fails in Japan.