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But this would allow MSFT to run the console market with an iron fist. No more perks, no more price cuts, no more JRPG games.

I think you have the 360 confused with the original X-Box which had zero JRPG's. The 360 has plenty of JRPG's and many more in development. They even have their own developer Mistwalker that only makes JRPG's.