I think to say that eastern developers make more 'good' games than western developers is a little silly.
Before I continue, however, I think it is worth mentioning that I believe there are differences between european and american games developers, though these differences are getting a lot smaller.
I actually think that more 'good' games come out of the west than Japan but a lot of the time these don't do well in Japan just because of differing cultural tastes. It is well known that the japanese in general dont like FPS games but something like Half-Life is an absolute masterpiece, yet it would still do badly over there.
I actually think that Japan is falling behind in terms of games development. Western games aren't so set in stone in their design issues and we now get gems like Viva Pinata coming out. Whereas in Japan you just get your RPGs etc.
In the end, what I think I'm trying to say is, is that great games have come out of both regions, but the west has finally cought up with, and surpassed, Japan as far as making great games goes.