The console industry is dying in Japan anyway, so I don't think MS cares much anymore. When they cut ties with both Mistwalker and Team Ninja, I think it was a sign that they basically are focusing all their attention on the Western market.
There's a good chance IMO that Wii U sells less than Wii and PS4 sells less than PS3.
I suspect they will go hard after Sony in Europe though, try to get a head start again, and outspend Sony on marketing with their (far) deeper pockets.