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It isn't the equivalent of a slur, but I can't really think of a better word to describe how japanese companies like Square felt when they saw their games described with a JRPG which again at the time, was a negative word to use when describing a game. Think like how "woke" is used in a negative sense to describe a game, that's how Square used to see the term JRPG.
We don't call Western RPGs WRPGS that much, they're just RPGs. That's the same in Japan, to them JRPG is just RPG. JRPG is a term made up by the west to set their RPGs apart from the wests RPGs.
I hate the word RPG now. I hate capitals.
If we're also describing personal definitions, my definition for "JRPG" is anything similar in structure to Dragon Quest or Final Fantasy. A small party of members, usually turn based where your attacks are from a menu. Even if it isn't japanese, I consider Deltarune/Undertale to be a JRPG despite both being western games.
RPG would be stuff like Dark Souls or Fallout. Games with a bit more freedom of movement, I guess.
Game's made in western countries = rpgs
This is just my perspective
Game's made in western countries = RPG
secondary classification based on genre: who cares
but if you care:
rpg
fps
sports
3rd person
Before the Squeenix merger Square was rather vocal about disfavoring the term, feeling it was a form of toonamization which undermined the value of Japanese games as a whole. It encouraged the perception of Japan as an exporter of novelty series which the average person does not care much about. Save for obsessives and other kinds of neurotic peoples. In other words, a second rate country whose goods exist at the behest of charity and undesirables.
Square’s difficulty remaining financially soluble, and acquisition in a deal Sony brokered, mirrors the acquisition of Origin Software by Electronic Arts. The same form of destructive and cutthroat marketing and competition was used as well. Many companies in Japan find themselves sold off to Yakuza.
Enix’s reasoning allowed them to remain solvent in a market which favored a dual purpose identity within Japan. But the attempts to have things both ways has been difficult, and is one of the major problems Japan has faced for a while. The attempt to unify Squeenix under a single banner has been mixed, essentially alienating the old order and turning the companies themselves into market puppets in a small pond rather than market leaders who compete with the world.
Jrpgs are rpgs, but bad, and lacking most of the things that should be in a rpg. So I can understand why that term hurts their feelings.
RPG games should let you create your own character, decide what to do, decide what to not do, give you many side activities, not force you to stop playing once you get to the end of the main quest (assuming there is a main quest)
Square forces you to play as predetermined characters (but sometimes you can change their name! Wow, amazing!!!), they force you to strictly follow their story exactly as they conceived it and, besides optional grinding, you must do exactly what they decided that you must do in order to advance.
RPG makers are ambitious and generous people who want to give you a tool to create your own stories and your own digital life inside their sandbox. Square are egocentric people who want you to follow their fantasies exactly as they conceived them in games that, in most cases, are extremely less interactive than most other games, in general, not just rpgs. Jrpgs in most cases are in the middle between a normal game and a visual novel in terms of interactivity. And, to "improve" this, instead of giving you actual fun interaction with the environment Square usually puts obnoxious QTEs in their battle systems that strongly put anyone who id not a bot created to win them at a serious disadvantage, or find other ways to pointlessly make the battle system overly complicated to give you the illusion that there is more interactivity while you still can't do anything meaningful in the game besides following exactly what they wanted you to do and talking with stupid npcs that repeats the same prhase over and over again every time you talk with them.