Wasn't there a report about Capcom being surprised at the PS4's success outside of Japan and being bummed that they didn't start many projects for it?
That might be the case for others as well but overall yeah, the console side of things isn't anywhere healthy in the region.
Though I do wonder if Japanese developers not supporting consoles much will eventually result in Japanese gamers having their tastes change and they start buying more western games.
Capcom figures if there are suckers enough overseas willing to buy a PS4 despite any issues, maybe there is a market for Resident Dude-bro 7, and DMC2?
Probably. Modern Capcom makes bad decisions. They might have even patented the process.