UltimateUnknown on 22 December 2012
I think Japan in general has moved on from home consoles over the course of last gen and started focusing on handhelds. You can see how the 3DS has caught on fire over there and is getting a ton of support from Japanese developers.
No real point for MS to invest in them now. In fact MS don't even have that many western 1st party studios, let alone Japanese ones and they are dominant in the US. So I don't even think MS cares about having 1st party studios in the first place.
