Henaki said some of what I was going to, James…Guilty Gear has become the 2nd largest overall tournament fighting game in the US. You may not see it because it’s a bit less active on the West Coast than in many other places, but it’s drawn the numbers at every major this year. Definitely not comparable to VF or even Melty Blood…
And regarding the Japanese thing, I do think that a scene becomes weaker without international competition. However, there is a case that offers hope here: Soul Calibur.
During the prime of console SC2, France had some of the world’s strongest players - remember the Nightmare who won Evo2k3? A few other countries also represented well in the world tournament.
Although many veterans quit because of SC3, it developed strong scenes in a number of countries: Canada, Puerto Rico, & the Dominican Republic. A Dominican player actually won SC3 Nationals, 3 Canadians placed in the top 8, and 3 more Canadians made top 16.
And now in SC4, still a new game, quality play is already emerging in the US, Canada, Mexico, the Dominican Republic, France, Poland, Hong Kong, and Singapore. There are probably other places too - this is just all I’ve seen on Youtube and caliburforums.
As such, I think it’s safe to say that releasing your game exclusively on console does not shut out true high-level play. People will still push you to step it up…it just won’t be the Japanese doing it now.
I don’t see why HD Remix can’t accomplish something similar. It’s a cheaper game that will offer good online play, whereas SC4’s online is so terrible that few serious players use it at all (and even they generally don’t play their main characters on it).
Basically, with this upcoming generation of fighters, I think you’ll see Japan and West Coast lose their dominant status and more countries become a part of the scene. This has already begun happening to a certain extent, actually…