In Japan IOS/Android/mobile games are more popular than console games so why make a game on a console?

Terra Battle is better than Blue Dragon, so they can still make some good games. They just need to find a good situation with a publisher willing to pay for a game.

They Mobile now. :(

I must be the only person on the planet who liked Blue Dragon way, way more than Lost Odyssey. I liked them both, but I found BD big and vibrant while LO was about one Jansen Friedh away from being kind of a snore.

I don't really see the point. Mistwalker is more of a design studio than a developer. They don't have the capacity to do anything other than mobile games internally. So if they're going to make console games they'll need a publisher as well as a co-developer to do all the heavy lifting, and since publishers aren't exactly beating down their door, Nintendo can already have them all to themselves if they want without buying them.

True, but picking them up has some tactical advantages as well as public relations ones.  Hironobu Sakaguchi is still a big name to a lot of JRPG fans, though perhaps not as big as he once was.  Being able to say they have him would be a big deal, especially since they already have another heavy hitter in Takahashi.  Tactically, it cuts of competition.  Sony and MS aren't beating down their door right now, but if they made a couple games for Nintendo that die rather well (or if MS is in need of an RPG), one or both could come knocking.  Buying Mistwalker preemptively cuts them off.  But yes, if they don't want to spend money right now they could just establish a partnership agreement since no one else is.

Microsoft is definitely going to have their hand in JRPG's again as they refuse to give up on the JRPG market. You can bet your bottom dollar that they are going to pay a visit to Mistwalker. Nintendo has one of the best RPG developers exclusively to their brand. If they need Mistwalker they are only a phone call away. The only company who can't call Mistwalker is Sony, but they will always have an abundance of JRPG's when they are winning exclusive to their platform.

Doubt it ... Microsoft has VERY much given up on the JRPG market. I can't even think of an exclusive single A budget JRPG coming to the Xbox One! 

Every publisher that has worked with Mistwalker end up been burnt cause they weren't satisfied with the performance of their co-developed games. 

Mistwalker employees are mostly composed of game/concept designers, NOT programmers. I can see Microsoft been more interested in Marvelous AQL since they did most of the heavy lifting for Blue Dragon and Lost Odyssey ... 

I can't see microsfot working with them again however I can see Nintendo. They need games to fill out the wii u lineup and the last story ended in a way that could spawn a sequel.
However this will only happen if Nintendo is happy to break even on the game as I can't see anything they make selling gangbusters on the wii u.

Also S.T.A.G.E why can't sony call mistwalker?

As you can tell by Microsoft being in the console business because of Sony......they don't like to be ignored.  There will be JRPG's that they will fund and they are STILL after Japan. Microsoft is funding Platinum Games as we speak for Scalebound and trust me...they will fund a Japanese JRPG. Phil Spencer is interested and he has talked about it in the past whether you know it or not.

http://www.dualshockers.com/2014/10/08/phil-spencer-explains-why-xbox-one-is-sold-in-japan-in-active-talks-with-japanese-studios-about-games/

"You talk about JRPGs, and there just aren’t as many built as they used to be. I’ll tell you this. We’re in active discussions with Japanese studios about games. I wanna make sure that the Japanese console development community stays strong and grows back to where it was. If we can help, that’s great, by opening up a western audience."

Ever wondered why Sony was the only company not to get an excluisve from Mistwalker last gen when everyone else did and sold like crap compared to what a Sony exclusive from Mistwalker would've sold?

Sony and the father of Final Fantasy, in Sakaguchi don't see eye to eye and probably never will.