I agree that Microsoft needs a more diverse line-up of games that appeal to Japaneese Gamers, but at the same time I agree with everyone here that said Microsoft has done more than just 'copy' Final Fantasy ...
In general, Microsoft's biggest problem with attracting gamers to their system is their narrow focus on the core group of gamers; and this is a double edged sword being that it makes their system far more attractive to these gamers while making it less attractive to a much broader group of gamers. This is not an easy problem to solve ... Nintendo is one of the original videogame developers and has the most talented group of designers for generating new content ideas, while Sony has survived off of being so popular that every third party publisher produced exclusive games so every genre is covered.
