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If Capcom and other Japanese companies like Square Enix run themselves into the ground thanks to clueless morons in Japan, so be it. I'll feel the same way about it as I did with LucasArts earlier in the year, the result is completely deserved.
It's not Japan being stupid, it's Japan trying to do what they do best: emulate someone else to make a better product. I'm at work, so i'm less coherent than usual, but this problem isn't limited to Japan. Every large creative company is undergoing layoffs right now, and it's because someone isn't bringing in a shitload of money after spending a shitload of money. It's bad in all directions.