Software developers in Japan have traditionally been undervalued, as it has been seen as a job as anyone can do with a little training. This has meant while there have been some really great Japanese software developers, there have been many more totally incompetent ones, bringing down the average level of software developers here.
In recent years though, there's been a mini-boom of startups here. These startups realise the value of talented developers, and are trying to attract them through hirer salary and better working conditions. While the pay isn't as good as the US (the weak yen makes them look even lower) and the working conditions aren't as good as Europe, things are defiantly heading in the right direction.
If you are someone who's been wanting to work as a developer in Japan, I've put together some resources here: http://www.tokyodev.com/jobs/