thats why i mentioned japan specifically..........their glory days are long behind them at this point.
I disagree, it's just that much of their focus has shifted towards handhelds due to lower interest in home consoles and lower development costs. That's where you'll find most of the quality JRPGs and so on these days. Also, Japan is just as big in the gaming industry as they've ever been, but that industry has grown significantly in recent years, thanks in part to the increasing presence of Western developers/publishers.
Anywho, I don't keep track of Western developers well enough to know where they're all based, but I'd say American devs are no better or worse than anyone else these days. Some games look better than others, some run better, some are terrible, etc. I tend to only like Japanese games for both the types of gameplay and exaggerated (can't really think of better word right now) style, but I know a good game when I see one, regardless of country of origin, and there's an extreme shortage of said good games wherever you go.