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Japan is obvious why some games aren't coming out for 360 there, but Europe is kind of bizarre if the passing comments in the podcast are to be believed, especially considering the vast majority of the 360's library likely appeals to Europeans. Sure there are games that are more popular in North America (like Halo 3) but there are many that sell very well there (Bioshock for example).

These are the same guys who got my hopes up that Dead Rising 2 would be shown at this year's TGS, so I don't really put much faith in them, also even if true it might not become reality if 360 sales increase in the rest of Europe like they are in the UK.