I think MS would be smart if they treated Japan as a third party market. They've had console failure after console failure there. The market itself is going to be shrinking massively over the next couple decades to lack of babies in Japan, anyway. Might as well maximize revenue and profits and eliminate costs.
Release all Xbox Series S games on Switch 2 (exclusively in Japan).
The Switch 2 will be significantly more powerful than Switch 1, even just natively, based on Nintendo patterns (Wii U was a huge upgrade over Wii, which was a minor upgrade over GameCube, which was a huge upgrade over N64, etc). But factoring in dlss 2.1 or more and suddenly the Switch 2 will probably be able to play Series S versions of games with some minor adjustments.
Why sell 10,000 copies of a AAA games when you could ditch the hardware for the region and sell 2.5 million copies of the game?
I say this as both a huge Nintendo gamer and a Series X owner.
I'm sure it would be tricky to prevent Americans from trying to fool the system and act like they are in Japam so they can buy MS games on their Switch, but it's doable I'm sure. Plus, even if they do that, you are still selling the game so it's isn't that much of a loss lol.
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