PS3 has been rough for them. But at the same time, look at how fast they can edit features in Agni's Philosophy on Luminous. The closer they get to being able to utilize their Visual Works studios assets, the farther ahead they'll be since not everyone has that kind of resource like they do, and now they can use that in their actual gameplay engines.
I think the Cell architecture crippled them, and Crystal Tools. I think their output next gen will actually go up, and they'll make games faster. Not to mention they've had a bit of internal management restructuring, purchased Eidos and integrated some of their tech into theirs, and PS4 is far more developer friendly. Even without all that, they started outsourcing some bits and got XIII-2 and LR done in less than 2 years each. They also rebuilt XIV from scratch in 2 years and it looks great on PC (and that's about what we can expect on PS4).
I think there's some reason to be optimistic about the future. Even Konami seems to have their next gen engine lined up and ready to go, with MGS and Zone of the Enders in the pipleline (not JRPGs, I know). JRPGs at this level will be relatively rare though. Pretty much just SQEX and Capcom can do it. From Software will probably put out some gorgeous stuff on Unreal 4 after a while, but the production values won't be at this level in my opinion. Still pretty damn great though I'm sure. Atlus can't do it. Namco's Tales of games can't do it.