Seems relationship between level5 and microsoft is not the best, but i think that xbox isn't doing very great in japan could be more of a reason....there were rumors about ni no kuni coming to xbox too...

I think it has to do about this rumor

https://www.gamereactor.it/news/390673/Rumour+Ni+no+Kuni+II+arrivera+su+Xbox+One/

Could you add a little bit more information?

I don't know what game you're talking about.

You mean that mmorpg on the original xbox?

Is this some game that was never announced?

So they would have cancelled it much sooner in production if it was yet to be revealed.

Microsoft definitely tried with Japan if this is true. They went after platinum, level 5 and square Enix. But it was to little too late. Xbox isn't healthy in Japan so these fell through. Only SE worked for them with TR because that's a western franchise.

MS really put it up to Sony in Japan last gen and caused them problems selling almost 2m units I think. But this gen Sony were flawless and the ps4 has a stranglehold on the domestic traditional home console market.

Link and more info, please?

Source?

I thought it was never planned for Xbox1

You mean this? https://en.wikipedia.org/wiki/True_Fantasy_Live_Online That's old news, baby. It would have been interesting to see how that game turned out though.

Isn't the Switch beating it in Japan?

Traditional home console.  I didn't say portable or hybrids which are a different category to ps4/xb1/Wiiu