No, Microsoft doesn't NEED Square Enix (presumably meaning SE's Japanese titles for which they are best known; games from Western SE studios like Crystal Dynamics and Eidos Montreal are a different matter). Missing out on Final Fantasy or some other SE JRPG is certainly not ideal (you always want more games on your platform, not less), but JRPGs as a whole are not the huge, moneymaking juggernaut like they used to be, and Final Fantasy as a brand is weaker than it has ever been. Xbox's bread and butter has always been shooters, WRPGs, open world games, and other Western-oriented genres; getting a few JRPG fans to jump on board is icing on the cake. The only Japanese games that Microsoft need to get are the action-oriented ones with wide Western appeal (like Resident Evil and Street Fighter).
