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The entire RPG genre has shrunk signifficantly even in Japan with a couple exceptions.  High dev costs and constantly decreasing fanbase are threatening to make the genre truly niche.  The 360 is not helping this situation.

This is the important part: the 360 is not supporting the genre, nor is it a financially viable development spot for the genre.  Even by Legend's very generous estimates above the games didn't break even till 1 million sold. 

Also pardon me for doubting your sales wisdom that LO will hit 1 million stickball but you also said you expected Blue Dragon to hit 750K by the end of 2007... yeah that worked out great.