I disagree. Xbox 360 sold a respectable 1.6m in Japan even though though Don Mattrick abandoned Peter Moore's Japan initiative, if Don Mattrick had continued Peter Moore's Japan initiative though the 2nd half of the generation instead of ending it in 2009, Xbox 360 would have sold over 2m in Japan, possibly even 3m. While Xbox is never going to be as big there as a Sony or Nintendo system, you don't need to sell that much in Japan to be a success, as success is relative.
Also xCloud is something that can help the Xbox ecosystem in Japan drastically. Japanese gamers love to play games on their phone, well xCloud would allow them to play their console games on their phone over 5G. It could be just what is needed for MS to make an impact in Japan. But they still need exclusive Japanese content on the Xbox ecosystem to make that happen.
But I am glad that we agree that MS should fund some new IP's in Japan and open some 1st party studios there.
If you expect MS to have some third party deals for exclusive Japanese games or Japanese studio acquisition for Series X launch you are almost certainly setting yourself up to disappointment. The current state of the market is that Xbox now has less 10% of console marketshare. Add PC in there and the fact that Xbox audience has the smallest percentage of people who interested in these types of games out of all platforms and you'll probably get the target audience of less than 1% of gamers. Do you think that any Japanese dev would be willing to take such a deal? Unfortunately it's almost impossible right now. MS needs to fix worldwide appeal first and then move on to trying to get Japanese stuff. When 360 launched it was way easier, because every platform except PS2 was irrelevant in the grand scheme of things for Japanese developers. There wasn't a huge audience for their games on Gamecube or PC. Now you have PS4, PC and Switch - all these platforms has lots of gamers interested in these kinds of games, so trying to sway developers to Xbox platform is now a way harder task than it was during 360 era.
Why did you list Pc as something separate? PC is Microsoft. Their storefront comes with every PC and their games release on Steam now.
Even PlayStation gamers who bought Minecraft, Hellblade, Outer Worlds, and who will buy Wasteland 3, Minecraft Dungeons and Psychonauts 2 are doing gods work in my opinion :) Same goes for Switch players buying Hellblade or Ori.
Case in point you don’t need a Xbox to support Xbox. Even when you avoid the console millions of gamers give their time.
That’s why I think MS will release a dedicated Xcloud box sometime in the next few years. Very cheap, much like Chromecast and how it’s used for Stadia to stream on TV. It’s gonna crack the markets that don’t want to buy a Xbox console. Game Pass will be paired with it and as long as it has notable 3rd party Japanese content that should suffice, until MS somehow gets exclusive content.