I mean, Jesus Christ, America. We can see it happening right now in China. They were shit in the world economy (and their own economy, for that matter) until the government started letting businesses actually profit and compete with others (i.e., more capitalism).
The Corporatism part is quite right, after all the corporatist state envisioned by Mussolini was a system of lobbies, regulated by formal mechanisms. However, when Deng Xiaoping turned China towards a market economy (but not really a capitalist one) in the 80s, China was already doing comparatively better than India or Brazil, two capitalist states that a few decades early were in a better position than post-revolutionary China. The actual Chinese economic system is a bit complex and not really capitalist, its big players are state owned and the banking system (that is the capitals) is mainly state-owned or under the firm grip of the state.
This caused them to grow really complacent and unimaginative and slow to react to market changes.
Were they ever imaginative and fast to react?
They inherited a monopoly from IBM, they leveraged that monopoly, but outside of the warm, reassuring PC world, that IBM created, they seem to be astray.
So? These days, Naughty Dog use C++. On Visual Studio. Because they're part of Sony and that's what Sony uses.
They were already part of Sony at the time and yet they used X Emacs. They used and use Linux a lot, they used and use Scheme/LISP a lot and they used and use X Emacs a lot. Take a look at their presentation for the development of Uncharted from GDC '08: there's a nice screenshot of Emacs on Windows (they use Cygwin!) with some Scheme code.
It helps that the compiler vendor is the same as the IDE vendor. This enabled VS to be knowledgeable about the languages you write in it in a way that gcc has expressly forbid Linux tools from ever possibly matching, for years. (With the proliferation of LLVM-based compilers this may change.)
PS4 use LLVM/Clang. PS3 allegedly used gcc as backend. Both use Visual C++, but only as a frontend and only if you want to use it. Bonus slide: http://image.slidesharecdn.com/unchartedtechgdc2008-110214171906-phpapp02/95/slide-25-728.jpg?1297725639 .
What is research but a blind date with knowledge? -- Will Harvey