So the best and the brightest did not tend to go into software and the typical state of software engineering in a lot of big japanese companies was extremely bad... It's getting better but it's still not great.
Nintendo also has a tendency to outsource a lot of their software development (IIRC the SDK for the wii and the DS was outsourced to intelligent systems who themselves then outsourced part of it)
This is of course a generalization as things goes and there are great things coming out of Japan (hello Ruby!) but having lived there, there was a marked difference between the software engineering culture in Japan and the one I saw in the US and Europe, with Japan being easily a decade or more behind.