This is an opinion that has been a long time in forming, but I am coming around to an opinion that the more simplistic viewpoints I've possessed on the differences between American approaches to storytelling and Japanese ones are somewhat off the mark. Note:  This is a rant, it should be treated as a rant, and if it doesn't make sense to you, that is because it is my brain leaking into text on this blog.

First, my original opinion:

To put it simply, it was my belief that the Japanese had a tendency to go for emotional surrealism (in other words, emotional bombardment) and visual excess (exaggeration) to tell their stories.  In opposition, Americans tend to go for the 'gritty and realistic', with straight out bullet to the head realism.  This was a generalization that, while based on my experiences with Japanese video games that told a story (both VNs and jrpgs) and Western games that more or less tried to do the same (Isometric RPGs, Bethesda-style games, etc), was never meant to be an absolute statement but just a general opinion of the tendencies I'd encountered.

Second, my new opinion: 

First, I've come to the conclusion that American gaming companies don't know how to tell a story anymore (since Bioware has gone crappy, Obsidian is about to get absorbed/has been absorbed by a company that has no idea of what it is doing, and the Witcher was made by Polish people).  Second, the Japanese seem to suffer from a similar malaise... and the source is, quite ironically, fairly similar in the cases of mainstream games.

It is the disease I call the 'MMO virus'.  Yes, you who actually read my blog know my opinion on online multiplayer games and what they have done to erode storytelling games in general, but my recent conclusion is that this erosion has actually reached a critical point in the last five years.  Rebellions against the progression of this disease have occurred (Tales of Berseria, Xenoblade Chronicles 2, and Nier: Automata come to mind for the Japanese, and Pillars of Eternity II: Deadfire for America), but these have been relatively minor upthrusts against the toxins released by the cloud of mission-based 'stories' you see in games nowadays.  Bethesda has also contributed to this plague (fetch quests and hunt the monster quests  being a common plague for them as well), and it seems like every time I turn around, I see another game trying to tell its story through an obvious mission or quest system is sitting right there.  Sure, the systems had their roots in D&D games, but the way they've developed is the result of the plague that infected the world using games like WoW as its vector.

I first began to see signs of this disease back in the PS2 era, though it was mostly limited to 'high end' games at the time, like Final Fantasy (XII having essentially repurposed and altered XI's MMO battle system for a single-player model), I was honestly horrified to see how easy it was to let myself get led around by the nose from objective to objective in hopes that I'd find the story in there somewhere.  The problem was, once the objectives became my reason for playing (as was inevitable, because that is the tactic they use to draw you in), I increasingly realized that I couldn't enjoy what story was being told, because I was impatient to get to the next objective, even though I didn't find any of that searching for objectives to be fun in the least.

VNs suffer from a different set of problems.  While jrpgs and western games suffer from the simple fact that the current generation of makers grew up obsessing over pathetic attempts to graft stories onto multiplayer games, VNs suffer from the fact that the best and brightest of their creators are... getting old.  Hell, some of them even died in between projects.  Worse, no one of equal capability has replaced them, leading to an unfortunate confluence of near-universal incompetence and corporate inability to grasp the reasons for failure and fix it. 

No, I'm not saying that all new VNs suck.  Hell, if they all sucked, I wouldn't still be trying to go back and play them, like the burnt-out junkie I am.  No, my issue is that there is a sudden dearth of developed talent within the world of VNs that has gotten horrible in the last five years.  Most of the major names are retired, have moved on to 'greater' things, or are dead.  Shumon Yuu is silent, Hino Wataru seems to have gone underground, Masada is probably off in his own little world, Fujisaki Ryuuta is circling in place, Kurashiki Tatsuya is off indulging his inner sadist with half-assed games, Kazuki Fumi can't seem to stick with one thing long enough to make it great since Akeiro Kaikitan, and Agobarrier is three years dead.  That isn't even mentioning all the formerly major names that have just decided to retire without telling anyone or got hired away by mainstream video game companies. 

What is replacing them are primarily LN writers... who, unfortunately, tend to write like middle school street kids on crack (and not in a good way).  They often have great ideas, but they are fuzzy about execution and lacking in technique.  As a result, you get a bunch of third-rate one-off VNs that no one really likes.

Artists aren't a problem.  There will always be plenty of skilled otaku artists who can draw h-scenes.  The issue is and always will be writers... because it is the writer that decides whether a VN will become remembered for years to come or be dropped back into the dung at the bottom of the latrine.