To me 360 won't dominate this genre until it racks up the big sales for them. Just buying the titles isn't enough - they have to sell well globally vs similar games on other consoles.
At the end of the day while the 360 might tie up more through throwing money around I still wonder about the potential of the console in this genre vs titles on PS3 and Wii.
For example I'd expect the big titles (such as FF) on PS3 to demolish 360 titles in Japan and to sell at least as well outside Japan.
Still, an interesting tactic by MS to try and really pull this genre to the 360 while cutting off supply (or at least limiting it) for competitors.
Although if I was them I'd save all the money I presume this and buying other exclusives is costing them and use it to fuel at least a small price cut in US - but I guess I'm not in charge of 360 strategy!
The console already has a great library but it is being beaten WW by PS3 most weeks and killed by Wii and I think a lower pricepoint would drive more console sales than pumping more money into the games library.
Try to be reasonable... its easier than you think...
