What JRPG fans still want is to explore an interesting world with endearing characters. Most long-time-JRPG-fans-but-detractors-of-recent-Final-Fantasy-games will tell that that is what FF has been lacking.
Yet when Squeenix delivered what they were asking for with FF12, the very same people complained because the game had no story (except it was there, if you bothered to speak to the NPCs instead of waiting to be spoon-fed everything in the next expository cutscene), that the protagonists deeds felt meaningless (ignoring the fact that "Big Epic Clashes of Armies that storytellers love to talk about so much are Not the most important historical events" is one of the main recurring themes of Matsuno's games), that its battle system was boring (because of course having a great customizable IA which spared players the busywork of micromanaging every meaningless encounter with mooks meant that you spent a lot less time fiddling with the battle menues: oh the heresy), that the protagonist was a non-entity (despite the fact that he acts as the commoner foil to Ashe's aristocratic self-righteous vengefulness, who, by rejecting his own desire of revenge and embracing his childlike curiosity about the world and its inhabitants ends up teaching compassion to his queen and stops her from becoming the genocidal puppet-tyrant she was about to become, gaining the unbridled freedom he craved for in the process).
So they caved in and with FFXIII gave their audience a giant corridor even more corridoresque than the already corridorly FFX, which sold more copies than 12, despite all the complaints about its galring flaws.
One thing that Jim ignores is that there are plenty examples of mediocre, designed-by-commitee, branded-for-mass-appeal, expensive exercises in shallowness which sold a lot more copies than expertly crafted niche products.
Sure, the business model he rails against is so morbidly unsustainable that it deserves all the scorn it receives, but it's not a pure product of insular circle-jerking among industry execs as he implies.
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The thing is, the biggest culprit seems to be the need to make sure most games' budgets conform to AAA norms. Players are used to lavish cinematics, hours and hours of gameplay time, extensive customization and a certain modicum of freedom, and offering these things costs money - on top of the ever-increasing graphics pipeline.
Which is why I think that to survive the most expensive AAA games are going to become prestige projects: that is, expensive games not meant to be profitable on their own but which exist to showcase the talent of a company developers and increase the brand recognition.