There's some truth to that, but you have to remember their geographically restricted market is actually much bigger than Japan. It includes the U.S., Europe, and much of the world. Sure, they can't sell directly outside Japan and their retailers can't really sell outside of Japan (or whatever the limit is). However, how much of their product is actually getting outside that small market? I'm sure nobody here has actual numbers, but Bandai is getting a lot of money from outside Japan for it's SW stuff. And license or no license, they don't give a rat's behind where that money is coming from. Of course, if they did, they might consider some other subjects. If they made a larger MF or Y-wing, maybe very few Japanese modelers would build it. But if Americans are buying oodles of them, they will still fly off the shelves in Japan.