They made strides with the 360. In addition, the new Kinect supposedly has no motor and a much wider angle, making it less space consuming.
Some genres like old-school shmups are owned by the 360 in Japan. In addition, it has a loyal following for visual novels and gamers who like Western-style games.
Mega stores like Bic Camera and Yodobashi Camera still have sizeable 360 sections, so it must be selling enough. Essentially every single local game store also carries it to varying degrees.
There is a also a decent-sized import scene where stores like Sofmap carry lots of European and US 360 titles.
I see no reason why they shouldn't release it.







