You could argue that they dominated the market because they were the only show in town. Back in the day the NA video game market was much much weaker. If they need to change or not is a complicated question, but insisting that one doesn't need to adapt to compete is usually a one way ticket to obscurity.

I think they need to realize there is a big area between effeminate and macho. I don't think that it is NA audiences need macho characters, it is that they abhor effeminate ones.