I still remember when the iPhone was first available in Japan. They had to change a lot just to accommodate the functions.

For example Japan does not use SMS. Only Softbank uses SMS which is why they are the most popular for foreigners who try to contact overseas. Even then each SMS overseas costs an average of 105yen (US$1) each. Or with AU/KDDI which only allows SMS to same network phones.

Japan uses mobile email which is still widely used and Softbank as a result had to modify iPhone standard systems to allow this.

Saying this my point is that Japan's problem lies with the fact that their technology is in it's own universe and not available outside. Which is a good thing and a bad thing. For example, TVs in Japan cannot be used overseas, their phone systems use WCDMA which cannot be used overseas. When Japan was the centre of the technology world this was good because the world had to try to follow them. Now that they aren't they have to be able to adapt so that their technology legacy will survive the future changes from overseas.

Here's hoping that the turn in people's thinking might help Japan get out of their technology downslide.