Really? Japanese companies making games for Japanese consumers is a question of morality?
Oh boy, this won't make me any friends here but yes, I truly believe that it is a question of morals. It is morally wrong imo when those companies keep giving us the impression that they actually want to have an international customer base, to then again and again betray that customer base when it suits them best. They should not spin tales of being worldwide companies if they only serve one market first and then only dripfeed some of their output on a case by case basis (often based on problematic assumptions) to the other markets they themselves have entered and made fans in. Both Capcom and Nintendo (and perhaps most Japanese game companies) are guilty of that, I feel.
The reason why I use the word "morality" in this context is because I truly feel that someone who has spent time and money on a series that a publisher made available in their territory is
entitled (yes, I'm going there) to be able to have his/her investment pay off by being able to buy and consume the other/final parts of that series. In other words, I deem it
morally dubious or even wrong for a company to not stick to their word and finish releasing all parts in a series. This goes for all media by the way, as I have the same stance with tv series getting cancelled before their storylines were finished.
As an example, imagine how big the backlash would have been if Bloomsbury would have chosen to not release the last Harry Potter books outside of the UK (or give others the publishing rights) because they thought it was too British for those audiences (which compared to games wouldn't even have been that big of a problem as many could still buy and read the physical UK version, but bare with me for a second). How morally just/fair would people deem that to be, especially all of the fans outside of the UK who were invested in the series up till then (and who could only have become fans in the first place
because those first books were released in their territories and because Bloomsbury wanted them as customers)? That is what's happening here, but in the world of games people actually seem to defend it because "Japanese companies serve the Japanese market first, duh," thereby ignoring 30+ years of Western activity by those very same companies and the masses of Western (but pretty much
never the Japanese) fans they are leaving hanging with such decisions.
If companies like Capcom are being hypocritical by going back and forth between wanting to have an international customer base or not in terms of localizing games based on when it suits them, we as their customers should at least not blindly defend their choices for localization but instead call them out on their hypocritical stance, right?
Ermmm... Japanese creators should be able to make games that speak to their own culture / history. I take more issue with the apparent belief that because a game contains information about Japan, it's somehow doomed to fail in the West.
Who is this mystery consumer who refuses to buy a game about anime lawyers merely because it takes place in Japan?
Generally, yes, they should be able to. In cases like these though, I think they probably should not because they would be making a Japan-focused game while they are (A) operating under the umbrella of a company who wants us to believe they are serving a global audience and especially (B)
while they are working within a series that already has fans outside of Japan.
I think creators like Takumi have at least some moral obligation to serve
all of their established fans, not just their Japanese ones, so in that sense I'd argue that if they are consciously making something that in all probability would not be made available to a large part of their fanbase (for whatever dumb reason their employer/publisher comes up with), that they are contributing to ignoring or perhaps even betraying that part of their fanbase and as such might want to reconsider their proposed design plans. That is at least what I - as a person who apparently has quite radical moral principles - feel. And yes, I agree that this is painting a very black and white world and that things are not as simple for creators working under powerful publishers, but still.
I do agree with your second point though by the way. To think that this new game would not be appreciated in the West because of the setting while all the other Phoenix Wright games are despite their quirkiness, or many other quirky and very Japanese oriented games for that matter, seems very narrow-mided to me personally. But apparently Capcom (and Nintendo) actually seems to make decisions based on such a narrow view...
...
Edit: TL;DR: To me the bond between a creator/publisher and a customer who has invested time and money in an IP (and has become a fan of it) is sacred. As such I deem it morally suspect or even wrong to (A) consciously create new iterations within an internationally established series that are unlikely to reach fans in other markets or (B) to go back and forth on localizing said iterations of a series on a case by case scenario and often basing that decision on wrong assumptions about taste. Both actions lead to anxiety in the international fan base while a small part of the fan base (the Japanese part in these cases) is held in the highest esteem. I also question the sincerity of companies like Capcom (and Nintendo) who profile themselves as serving an international market when they either keep creating IPs that are targeting the tastes of their home fans and are never intended to release internationally (or at best as a bonus goal), or even worse when they first create fans in international markets with an initial release but then leave those fans hanging by not localizing new iterations. Only in (Japanese) games do we get to endure such practices on such a large scale and only here are such actions so broadly defended even by the customers by adopting a purely business driven perspective that looks at costs only (as opposed to a moral perspective that focuses on avoiding hypocrisy in company actions and on establishing continuity and consistency with regards to IP's being released in all territories).
Edit 2: I now realize that my sentiments were perhaps more geared towards the Chris Pranger is fired thread, and specifically his comments about Nintendo's localization policies, rather than Takumi/Capcom and the possibility of not getting a localization for DGS. His comments (and the way people en masse defended them) that Nintendo is not leaving money on the table by not localizing certain games really hit a nerve with me as to me it completely overlooks the larger issue of why a global company like Nintendo is continuing to greenlight games that need heavy localization in the first place.
If they are truly sincere in their goal to serve a global customer base, then the large majority of their games should be made with that international market in mind and not, as is still often the case, with primarily their Japanese customers in mind (after which it becomes almost a case by case test if said game would appeal to other territories). Or, alternatively, they should at least also allow their American and European branches to greenlight games that they feel would do well in their markets (but not necessarily in the Japanese market), like a new Metroid or F-Zero. To me that would only seem fair, but I'm sure many here would disagree. By the way, Capcom is actually doing that last bit to a degree with Street Fighter V (which is headed and promoted by Capcom USA but developed and supervised by Capcom Japan I believe), which is why I find their back and forth stance on the Phoenix Wright series' localization especially baffling.
Ok, I'd better stop typing now...