Here are some examples of Japanese properties that Japanese companies let the West develop games for....
Donkey Kong Country - the "ur-example", Rare revived the character and put him back in the spotlight. If you count Donkey Kong 64, Rare did 4 main titles in this series, and Retro did the new one.
Metroid Prime - Brought Metroid back from the dead, plain and simple. The entire trilogy is as close to greatness as it can be to masterpiece, Super Metroid, while bringing Metroid successfully into 3d. Other M's terribleness is a sign that Nintendo should have stuck with Retro studios.
Castlevania: Lords of Shadow - wow, what a break from the continous Simon's Quest and Symphony of the Night rehashes, MercurySteam finally made a great 3d Castlevania game, while offering a fresh new unique take on the series. MercurySteam should now be home to console Castlevania, and with DLC and a sequel along the way, things can only become better.
Upcoming DmC - Whine about the new Dante all you want, but I put faith a Ninja Theory when it comes to characterization, especially after the brilliant story oand characters of Enslaved.
Here are some franchises that Japanese game companies should let Western developers develop for.
Final Fantasy - easy....The loss of key people in the company, the drop in writing, direction,and storytelling standards (ex. Toriyama), the more distant from its roots it has become, and the more Japanidfied (thanks to Nomura) the series has becomehas lead to the decline of the series. Its time to put the franchise into Western hands, Obsidian for example. They would easily freshen up the series storytelling and other elements, as well as take it back to its roots. Add choice and consquence as well. And no more idiotic bird running females.....
Legend of Zelda - would be very interesting, and may freshen up the series. If Samus's series could get a makeover. How about Link? And when will they use Zelda herself as a protagonist (thats not those terrible 3do games)? The series does need freshing up.
The 7th Saga - this game should be remade, or expanded. Of all the SNES JRPGs, this game has the most Western flavor. It was also the Demon's Souls of its day, hard as hell. Apprentice battles anyone?
Contra - the West would do a Contra game well...it may have a hand at influencing the West in its game design as well.
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