I don't see it happening.

FF VII would move a huge amont of consoles in Japan, and bone and PC are irrelevant in Japan sales wise.

And likely come only on PC based on Kagari, the most informed guy about SE projects

The FF7 remake has created a lot of buzz here. It's one of those games the Japanese are still crazy about, so it will help. There are people who haven't been gaming since PS1 or PS2, who still play FF7 every now and then. Having a mainline Kingdom Hearts will also help, plus the lower price point.

PS4 is behind PS3 in Japan, but keep in mind PS3 had had two holiday seasons and a price cut at this point:

With the PS3's horrible second year and the PS4 getting a price cut at some point, it could catch up and eventually surpass it. That said, it's not gonna be a massacre like in other areas of the world.

Very likely, but the Japanese economy is weak though.

PS4 will outsell it, it has:

Dragon Quest heroes 2
World of Final Fantasy
Final Fantasy VII remake
Final Fantasy XV
Final Fantasy Dissidia
Nier 2
Star Ocean 5
The Last Guardian
Kingdom Hearts 3
Street Fighter 5
Shenmue 3
Dark Souls 3
Persona 5
Tales of Berseria
Everybodys Golf
Sword Art Online
Metal Gear Solid 5
Deep Down
Tekken 7
Dragons Dogma online
Godzilla Vs
Gran Turismo 7
RE7

As well as the fact that X1 is less of a contender than last gen freeing up people that would have probably bought that console to possibly buy a PS4

If DQ XI will be a PS4 game, then it's a given.

Seeins the huge love between Square and Sony, i dont see how it couldnt be a PS4( or PS4 PS3) game, it is obvious, especiallu since they want it on big screen.

So all these huge system sellers PS3 was far to have, i dont see why people think it's so impossible, they really think the market is dead and dont understand it's only dead because of not enough big games for home consoles.

Now PS4 will be much closer to PS2 than PS3 so it's logical to think it  could easily outsell it and reach 11-12M in the same time frame

There is no love in the gaming industry The previous generation proved it when many Sony 'loyalists' developed(timed) exclusives for the 360.

Seeing how much DQ IX sold on the DS, I wouldn't rule out the possibility of a 3DS version.

I meant love like in  " oh man i love you, your wallet is soooo freaking huuge! "  :p

Well, since they said they want a game ambitious, i dont think tehy could make a 3DS version at the same time, unless it's a spin off

KINGDOM HEARTS 3 WILL SAVE JAPAN

I wish

The market in Japan has contracted so much due mainly to mobile and Japan's lifestyle that not even a bigger number of system sellers can make the PS4 outsell the PS3, I think but there's a high chance that unlike the PS3, the PS4 will become very cheap late in its life so maybe that actually will give it an advantage and will get close.