@Michael-5
You are right that Microsoft abandoned its exclusive JRPG strategy, but it was a strategy that didn't bare any real fruit for them. The Japanese market didn't reward them for their efforts even when the 360 had half a dozen exclusives, and the PS3 basically had none. The Japanese consumer still purchased far more PS3s per week, and like it or not it isn't a particularly important genre outside of Japan.
All companies have to respond to what the consumers want, and Japanese consumers didn't like those games enough to buy a 360 to play them, and it is becoming increasingly clear that Western audiences can easily live without them. Anyway Microsoft doesn't have to fund exclusives anymore, because the likes of Square have warmed up to the idea of developing for their platform. Don't get me wrong I had a lot of fun with those exclusives, but Microsoft probably did better by putting more effort into other genres that consumers would and have rewarded them for.
If you were them what would you do. Fund a game that will ten to fifteen thousand more 360s in Japan, or fund a game that might sell a million more 360s in the Western market. They tried it didn't work and they moved on, and to be honest I doubt that if they had twice as many exclusives in that genre that it would have done them any good. It is pretty obvious that there is a strong nationalism component to the situation.
That said I think Microsoft might make more headway in the future if their hardware itself becomes more appealing. The idea of full room immersion might create a better aesthetic, and Japanese consumers may be more accepting of the idea of playing games on a Microsoft console. If that happens Microsoft might get back in the game of funding more exclusives in that genre.
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