Microsoft realized they banked on the wrong RPG market. The market they were catering to was a small, niche subsect of the market. Even in Japan they came to realize their WRPGs could sell comparably to many of the JRPGs they had on their console. Those same JRPGs don't bring in nearly the same amount of money as WRPGs, so MS is concentrating on getting out Fable III next fall, will probably put a good amount of money into getting Mass Effect 2 out and is more likely to gather a timed exclusive or full exclusive off another WRPG franchise.
I think what Microsoft didn't expect was that the RPG market was taking a swift turn in the direction of handhelds and it's useless to fight that. They wanted to undercut Sony in Japan, and found out most JRPG publishers didn't want to develop much for either of their consoles.
Tag: Became a freaking mod and a complete douche, coincidentally, at the same time.
