I don't know if I can agree with this. While Western Publishers are certainly mostly a waste of time. As Activision and EA are both only willing to pump out the same shit year after year like Cod, and Sports games.
There are still exceptions coming from the Japanese side of things. The Japanese companies (outside of Nintendo) are constantly trying new things. Even Final Fantasy games are basically completely new games every single time because they can't stick to a gameplay system they like.
Sure, but games like Final Fantasy and stuff like Nier (Automate) are more the exception than the rule. That's not really 'constantly'. If you look at Square's output from the past 5 years or so, the vast majority of it is remasters and rereleases of games from their 16-bit to PS2 era golden age. Or remakes of games from that golden age. Or games that are deliberately trying to invoke that golden age, like I Am Setsuna, Lost Sphear, Octopath Traveller and Project Triangle. And of course tons of iterative sequels to established franchises, a good number of which have been around since that golden age, if not longer.
I've had a look at Activision and EA's output during the same 5 year span, and ... sequels, remasters, remakes, the occasional new thing. And yeah, their yearly franchises, but if Square had such a franchise and the ability to put one out every year, what would be the odds that they wouldn't? My guess? Non-existent. Other than that, I don't really see them as being meaningfully different in terms of innovation, or lack thereof. If anything, I'd argue no other company is overall banking quite as hard on nostalgia as Square, other than Nintendo, and I'm saying that as someone who has enjoyed Square games these past years, while vehemently refusing to even touch anything Activision or EA.
Studios run by Sony are also very good and consistantly at least trying new things. God of War 4 was a rather large departure from previous GoW games. Horizon Zero Dawn was quite a different game for Guriella Games compared to their previous Killzone titles.
If this is meant as another argument in favor of innovation in Japanese AAA, it's not as good as you might think it is, because both of those games were made by Western studios.
Santa Monica is American, while Guerilla is Dutch. In fact, most of Sony's first party studios are Western. Insomniac, Sucker Punch, Naughty Dog and Bluepoint are all American. Media Molecule is British, as is Sumo Digital. The San Diego, San Mateo and London studios, obviously. The only notable non-Western studios are Polyphony Digital and Japan Studio, one of which exclusively works on a single franchise (Gran Turismo), while the other was the studio that used to make all the quirky, innovative but unfortunately not hugely successful 1st party games, but who these past few years have been pretty much relegated to basically doing mercenary work for other studios, and who not too long ago came into the news because Sony decided to downsize them.
So, not really a glowing endorsement of innovation in the Japanese industry when the majority of Sony's output is by Western studios.
FromSoftware has even moved out of the Souls-likes with Sekiro.
Again, a single departure does not a trend make, and it came after almost a decade of mostly doing the same. I mean, look at how much more diverse their portfolio was before Dark Souls and how that petered out to just Soulslikes soon after, until Sekiro. Then again, Miyazaki has called Elden Ring "the natural evolution" of Souls games, so I'm taking that as meaning they went right back to making a Souls game, except this time open world. It remains to be seen whether that is a good or bad thing.
Also, I'd like to point out that Sekiro was published by Activision.
The point I'm trying to make is that there are plenty of AAA-innovations being made all over the place. People just ignore it, or dismiss it if it's a change or innovation they didn't like.
My point was not that AAA never innovates, but that Japanese AAA is not particularly more or less innovative that its Western counterpart. Overall, it might actually be more traditionalist, rather in keeping with Japanese culture as a whole. Which is not necessarily a bad thing. Generally means they're less prone to pulling as much of the same AAA bullshit as their Western peers, which is why 90+ percent of the AAA games I bought these past years were Japanese.