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So many fanboys running scared...
I see people that mix software attachment with sales (no, a big software attachment doesn't mean more people enjoy your console, it means LESS people enjoy your console, some people need their logic checked). Must be pretty hard on them.
MS can give up Japan or not, the fact is that they're dead in Japan, and the writing was on the wall since last year at least. I said so one year ago and some people realize this only now? Some are even still in denial. MS can bash open doors if they want, they can make an official announce if they want.
But the fact is that they can't give up Japan. That would send a very very bad signal about their console and how they treat their customers if they do that. Actually, if they were to announce sth like that, I would see it as a preparation to leave the videogame business.

The worst thing are the people trying to destroy gaming. I read people saying japanese devs need MS to sell their game in western markets, and abandon japanese market. But these devs need to sell to japanese customers first. If they do the huge mistake of forgetting their core market and making games only for western people, the western devs will just butcher them, and you will see them die one after the other. The Nintendo domination will finsih them off.
It's funny because most 3rd party devs just cornered themselves. These stupid devs now have zero mean of pressure against Nintendo to have any favor from Nintendo. Capcom was the only dev smart enough to do that, just in time, they barely missed their window of opportunity. All the others will have to beg and are no loonger in position to ask anything of Nintendo.

The downward spiral of the HD console has started already.