The title on HN is innacurate. The original title is about Japanese tech giants i.e. Sony, Panasonic, Sharp and the like.
Note that these aren't primarily software companies. So although some of your points about software in Japan are true, they aren't very relevant for the trend in question.
> The main problems are simply that they can't keep up with the rate of development and change that other companies can handle
Having worked in Japan for several years, I heartily (or sadly?) agree with this.
In some ways, Japanese megacorps still work like American corporations used to 50 years ago: life employment, seniority system, women have little chance of career development, etc.
That said, web companies are arguably on the rise in Japan. Cf. Rakuten, Gree, Cookpad.
The Japanese tech giants are exactly the companies that should to be doing well now, if they had healthy levels of innovation hormones. Sony, for example, still have a great name and most of the over 40s I know would definitely give it weight when buying a new TV or sound system.
There is a real opportunity now and for the next few years to incorporate great software into electronic products. iOS & Android are doing it with smart phones and tablets. But, it's a good time now to go back and rethink a lot of other electronics and see how software interfaces can make them better. What would an iMicrowave look like? Android Intercom? Refrigerator RT? Car Stereo. Washing Machine. etc. etc. What better way to differentiate your televisions in 2013 then giving them the best software?
Japanese companies were once at the forefront here - great products at great prices with an eye for new paradigms (eg walkman). They still have the brand names.
Note that these aren't primarily software companies. So although some of your points about software in Japan are true, they aren't very relevant for the trend in question.
> The main problems are simply that they can't keep up with the rate of development and change that other companies can handle
Having worked in Japan for several years, I heartily (or sadly?) agree with this. In some ways, Japanese megacorps still work like American corporations used to 50 years ago: life employment, seniority system, women have little chance of career development, etc.
That said, web companies are arguably on the rise in Japan. Cf. Rakuten, Gree, Cookpad.