It's not just the cost of localizing stuff for the japanese market, it's also the challenge of marketing western games to the japanese, isnt it? During the two previous generations Microsoft really invested a ton of money and effort there. It didnt do them that much good in the end, due to the obstacles for a western company to compete with the japanese gaming industry on its own home turf. Nevertheless, back then western games on the Xbox platform could at least expect to be backed by Microsofts considerable wallet. This gen MS seems to have cut their losses with regard to the japanese market, so maybe it makes sense for Activision et al outsourcing the job of marketing their IPs to a japanese company with some experience selling stuff to the japanese?
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