I'm not even talking about open world game. Give me an example of the last good big budget game that was set in Japan.
And please don't say Tokyo Jungle.
Yeah, I was talking about gaming in general, not only about recent titles or open-world games. Of course old games count too. And it's not like settings outside Japan and the US have replaced Japan in big-budget games, as during last gen we got even more US-centric games, with modern/near-future setting. So overall, it used to be about Japan and the US, and now even more about just America.
... Now that I think about it, really big-budget games that were developed in Japan, are usually set in the west. But even then, my original point was that there are more games (old and new, big- and mid-budget) that take place in Japan, than pretty much anywhere outside Japan or the US, combined. (And to be more precise, I'm talking about games that were released in the west, so most Chinese, South American, Russian, etc. games are probably not included.)
But I also believe (and hope) that in the future, we'll see even more games that are set in China/India/other emerging countries, and I hope that they'll release them in the west too.