They need to make the games that sell in Japan themselves. Moneyhatting for JRPG's is not cost effective (especially since they often send them to the PS3 later).
If MS competes properly for the expanded market, that should help them in Japan. I doubt they will though.
A game I'm developing with some friends:
www.xnagg.com/zombieasteroids/publish.htm
It is largely a technical exercise but feedback is appreciated.







