Some of the people in this thread are acting as if the titles MS is talking about are Japan only releases. As long as they make a profit on the titles world wide, it isn't a waste of money for MS. Not to mention releasing the PS3 version of a game in Japan without releasing the 360 version is for lack of tact a stupid thing to do. Its not like they have to pay any additional cost for the game since its Japanese translation was already done for the PS3 version.

i do think the people in japan who own a xbox360 are very aware on what games come out, so most sales in start.
so the games need not too be made in large quantities

DMC4 was announced as a day-and-date title in Japan, as well as NA/PAL a few months ago (along with the whole Lost Planet PS3 thing as well).

Either way, MS can get a good niche following in Japan. As much as some clamor it's useless, it's not. Microsoft needs more Japanese titles, not only for Japan's sake, but Taiwan and Korea, which have similar interests (thus the partnering with Phantagram).

And beyond this, MS still needs Japanese content in the US and PAL. I wouldn't be a X360 gamer if it wasn't for Japanese games on the X360. There is a huge US and PAL userbase that will be buying your various Japanese-made games. And they'll buy them for whatever system is the best/cheapest. If Microsoft can make sure they're in prime position for those sales, by parnering with more Japanese developers, the better.

note to microsoft: STOP TRYING.

 /agree. People that say they need to stop trying in Japan are lame.  Mostly Sony fanboys are the ones expressing Xbox need to pull out.  Microsofts job is not to win the #1 slot in Japan, but get a good foot hold. They need to if they also want to have Japanese content on Xbox.  

I think MS is thinking about the new XBOX ..
so they want to build a strong base in japan ..

QFT... ... ... ??

Maybe it will take a 3rd Xbox for MS to break into mainstream Japan. MS isn't quitting, it looks like they have some sort of long term plan.

I lost hope in Japan when the Lost Odissey numbers where released, I just don't get the Japanese market. But that doesn't matter, what matters is because of MS's reluctance in Japan, I get to enjoy all the JRPG's that come my way. Who knows MGS4 might even come to the 360, wouldn't that be awesome!

So go ahead MS, keep spending $$ in Japan.

They have a strong support from:
*Namco-Bandai
*Tri - Ace
*Capcom

So they aren't doing so bad a that point. 

@gebx

Good luck with the 360 selling 1mil consoles in Japan lifetime, let alone in 07 like your sig says

good for ms, this should help boost sales, especially a blue dragon 2.