Obviously a lot of posters here neglected to do a little research. Mistwalker is not a large developer, and works in concert with other developers that do most of the drudge work. Most of their work is based around design, story, score, and layout. Apparently they were not financing the title, or were they doing the serious coding. Yes it is a loss that they will not have another title to their credit. However its in no way shape or form a serious blow.
Microsoft was so serious about supporting Mistwalker which is basically a second party developer that they even created a developer to do so in Feel Plus. Which as you can see was not involved in Cry On. Further more Microsoft has gotten serious mileage out of Mistwalker in its ancillary effect in the local market. Novels, Anime, Manga, and so forth.
Mistwalker were already in the design phase for Blue Dragon 2 before the first title in the series was released, and it is safe to assume that the same probably held true for Lost Odyssey. The only question for me is what Mistwalker got themselves into when Cry On was shelved. They seem to have a penchant for having three plates spinning at all times.
There is a lot of overreaching in this thread, and I have little doubt that a lot of posters are going to have to eat serious crow before all is said and done. Microsoft is going nowhere, and neither is Mistwalker. Losing a competent second party developer that gives you excellent market penetration, and dominance is not something that is done lightly. As long as Microsoft has Mistwalker they have the ultimate ace in the hole. A exclusive JRPG developer that seriously delivers.
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