It's the same old story, and not exclusive to big companies like Square Enix.
There's a lot of "Japanese Pride" that gets flaunted in game development like it's supposed to mean something, i.e. when a developer says they're making a game that is supposed to "represent the Japanese game".
From my observed experience, the games that get more success in the West tend to be games that ignore that Nationalist pride and just set aside culture differences and share ideas.
I'd argue that smaller companies seem to be more receptive to this notion, as opposed to Corporations full of tradition. Even Nintendo has weird traditions within their company (like having Developers be isolated from other people so they aren't distracted by outside ideas).
There's some really weird logic floating around in Japan, and it's evident that there needs to be a lot of corporate reform.
If you're heard of the phrase "Crunching" then you know what I mean, though that isn't exclusive to Japanese developers, it's an epidemic with many studios.
Usually the most Artistically "free" developers have to shake a lot of hands before they can make what they want in games, and it's a struggle just to make progress in a lot of areas because of the mindsets people have.
Mainstream opinions on how games should be don't help either, as they usually also stick with more traditional ideas with games too. And that's unfortunately what sells the most.
TLDR: If people started ignoring tradition and actually taking risky ideas and bring those to the table more, we might see better more original works. But there's risk involved, and it's not easy to take.
