if consoles are dead in japan, it wouldnt have sold 400k + already.
the problem isn't with the console. its with the games. WIIU, XBox One, PS4, 3DS, Vita. Japanese gamers buy their systems based on the games they want. Not a single good japanese game available on the system. or lets say. a game that appeal to the japanese gamers. how on Earth it will sell well ?
if PS4 didn't have BF4, COD and the likes, it wouldn't have sold so well in US /Europe either.
different countries have different style of games. till Japanese gamers get good Japanese games, the system "or any system" for that matter, won't sell. period.
When Sony release their big guns or whatever big 3rd party game like FF15 and Kingdom hearts and the console still doesn't sell like what happened to Nintendo, then you should worry.
I agree with everything you said, but it doesn't address the worry that people are bringing up in this thread, that the home console is becoming less and less relevant in Japan, and maybe elsewhere.