Japanese developers would stick with a xbox not in their country anyways if they care about western sales.

MS already has the foundation there, so it wouldn't be hard for them to only send a few thousands units here and there to retailers in Japan.

They can also cut the price by a lot to the point where they make little to money off the 360 in Japan, since its a small amount of units sold it wouldn't be a big issue.

Atleast we know MS has something to show at this years TGS :)

Actually thats Square-Enix and Namcos fault. Both of them took the bait and both lost. No one was forcing them to go exclusive or timed exclusive.

Square-Enix could have easily made Star Ocean 4 multiplatform and it probably still would have done at least 200k on the 360.

Tales of Vesperia could have went multiplatform and done decently to. Actually in the long run Namco still did well in Japan, while TOV got exclusivity in Europe/US so all was not bad.

I don't know the exact cost of porting a game over, but it can't be too bad when you see so many games released multiplatform.

For example, Square-Enix knows FFX13-2 will probably sell 1/4th of the units on the 360 then it does on the PS3 but obviously the profit margin is still there otherwise they wouldn't put it on the 360.

It also makes my wife a happy gamer cause we don't want to buy another system (and with the Wii U coming out and new xbox not far behind, its pointless to add another system in our house outside of the 3DS).

I think you are cherry picking a few games and ignoring numerous succesful titles. Games like Ninja Gaiden, Resident Evil, Gran Turismo, Devil may cry and a wide variety of fighting games like MVC and Street Fighter all do well in the west. Even very niche JRPG's like Valkyria Chronicles and Demons souls made it over 1 million sales and both are widely critically acclaimmed. Japanese development is far from irrelevant.

They've done well to survive this long, 6 years!

Microsoft knows jack about supporting game communities that have interest in specific products or smaller niches.  Unless it is a top selling exclusive they have, they don't do anything.  They roll out a product and hope individual consumers buy it, and then treat the entire XBox Live system as one giant community, with your own list of friends as another.  If you were into something like 1 vs 100, you are now out in the cold.  And for Game Room?  Well, that had a community, and still gets in top 10-20 every week in sales, eventhough the product was a botch job, and has no new content.  But, try to do anything with it, or any other product, and try to find ANYONE in Microsoft in community relations for a product trying to connect with a pocket of users.  Well... good luck.  NO ONE at Microsoft has a clue what a user community interested in an XBox product is.  NO ONE.  ZERO, ZIP, NATTA.  This comes from my end, when I had been trying to do stuff with Game Room, had a forum moderator tell me that Microsoft was watching what was being done by my CADERS group on event planning, and they did NOTHING, and when I called about issues with Game Room, and the community behind it, the concept went right over their heads.

Flat out, Microsoft doesn't get it.  I am not sure any of the three console makers get it either.  Sony seems to be trying harder, with the likes of Home, but they don't seem to do it much either.

Its nice to know they care, i hope for more jrpgs.