Woaw, this is pur utter failure. I mean, some companies do get away with this by journalists (Resident Evil 5, Dragon Quest), but Western developers get away with it a lot more.
Call of Duty's craptastic story is split by the gaming media of being "good" and "bad," while the gaming media went berserk over the "great" story of Halo 3(which was mostly recycled stuff from Halo 1, which was disappointing). Gears of War is also another craptastic story that literally is about nothing. Seriously, the point is "aliens invade Earth, save the few humans left," but it gets all muddled in poorly written, poorly explained, and poorly built storylines.
Japanese games (mostly platformers and fighting games like Sonic, Mario, Street Fighter, Tekken, etc) also sometimes don't have much of a story, and instead focus minimally on it, and focus on gameplay. In other words, loads of story details isn't always needed. Ultimately what games are about is PLAYING, DOING, AND EXPERIENCING, NOT WATCHING!!!
Overall, I feel that nearly all "bias" against Western or Japanese developers is people not liking the style that is frequently in one or another... or perhaps, in some situations, "my country is better than your country" extreme nationalism. After all, racism is completely different from nationalism and person preference (we should all be totally accepting of people's personal preference based on games, not race, nation, etc).
In the case of Western games, it is hard to tell the race of the people who made it due to heightened racial diversity in the West. That is unless you are racist against Caucasians (who make up most of the Western population). There is also the fact that many Western developers have Japanese studios and Japanese developers with Western studios, which further adds more diversity.
However, I do on a rare occasional see see this kind of nationalistic opinion in Western journalists and in Japanese journalists alike (although oddly enough, not as frequently in gamers). However, most biases are due to either personal opinion (which as I stated before, is a-okay), blind fanboyism, or ignorance (see: Kotaku, Game Spot).
Really though, if Alex Hutchinson better explained himself with a more detailed opinion and more precise language instead of lazily using the word "racism" (unless that is his opinion, in which case, he's got to have serious mental issues), then nobody with a brain would say he's an idiot. They could disagree, but it would be (aside from idiots and trolls) respectful disagreements.