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Mistwalker isn't first party, but the games they made for MS were backed fully by MS moneyhats. They are sort of like David Jaffe's new company, receiving backing from a company, but not owned by it.

Microsoft has gotten plenty of Japanese-oriented content, but the Japanese market is moving more and more toward handhelds, save for the ace in the deck Wii. The HD consoles are slipping into oblivion, day-by-day. MGS4 has a lot of weight on it's shoulders in the coming weeks.