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No, it's certainly not Microsoft's fault.

The problem is it isn't 1997 anymore. At that time FF games were hands down the most cinematic and "epic" types of games to a lot of people.

But today that's obviously changed, there's nothing special about Final Fantasy cinematics or anything like that, every game has that today.

The other thing is I think the increase in graphical horsepower has made cultural differences become more stark. Final Fantasy characters rendered more realistically really highlight how ... effeminate and strange a lot of the characters are to Western audiences. The kid buying Call of Duty isn't necessarily going to want Final Fantasy XIII, whether it's only on the PS3 or not.