But it is not just about Japan, the Xbox 360 was praised in its early years for bringing so much diverse content including + 20 Japanese exclusive games. You have an avatar from one of the biggest fighter franchises that did amazingly well in the past. During the early Snes era many flocked to the sytem because of SFII. We have a ton of users that even post how they love certain Japanese franchises like the Yakuza games. And the biggest selling game in NA isn't COD but Elden Ring this year.
The 360 with all its diverse content barely sold at all in Japan. Its not the content its the mentality of the place you are trying to sell. Building one studio isn't going to get you huge system sells in Japan. Spending all your capital on chasing that white rabbit probably isn't going to do that either since it was tried and failed. Instead understand the market and the purchase habits of Japanese consumers which would be a better investment. I believe GP has a good chance once MS get their mobile strategy going because mobile rules in Japan.
Here is how I see the market and the competition. Sony new service is more about combating MS GP but not in the way most believe. Sony wants to take away MS ability to get niche Japanese games like Scarlet Nexus and others by giving those devs the same deal to be on Sony new PS+ sub. Sony has a huge market advantage in this area and being a Japanese company they are going to snatch up all those opportunities. MS trying to fight Sony in an area where they have the complete advantage is a waste of resources, instead they need to venture into the markets that are maturing and snatch up those games. Become the main presence in those areas and when they start to pump out AAA quality content, you are then the go to system of choice. Japan is way to mature in their direction and with 2 dominate OEMs in Sony and Nintendo to really make any real dent. Yes, MS should keep strong relations with the big Dev studios and publishers as you want those games to continue to be made for your system but from now on, getting those niche games are going to be rough because Sony is going to make a real big effort to suppress any of those deals. When you start to see day one releases of Japanese games on Sony PS+ system you will know that its was probably an opportunity MS lost because Sony is the biggest dog in the yard.