Spade said: Ideally, this is what MS should do if they were serious, but well.. we know they aren't sadly. :/
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This probably a lot easier said than done. Sure, in theory you'd think it's not a big ask, but in practice, what are the needs of Xbox vs the needs of the developers over there?
Fund a game: Ok...what are we funding? MS may be willing to be on smaller projects, but it can't be entirely too small or niche either in order for them to get the kind of exposure they'd want in that market. What about the devs? Can they get their funding from elsewhere? From a source that won't bind them to a platform that will see THEIR exposure limited beyond what they could perhaps otherwise expect on Nintendo or PS? No need to even get into bigger projects that will definitely be seeing it as a major downside, unless their idea is rejected by literally everyone else.
Establish a new studio: Nice idea...but who's running and overseeing this studio? Whoever it is will need to be a very trusted and experienced person in that Japanese game dev scene, because good look recruiting people to this potential new studio when the rest of the devs over there are looking at you with raised eyebrows, knowing you've never ran a Japanese studio, have close to non-existent presence in the market there, and will ultimately be answering to a corporate structure that operates under an entirely different culture. If you're a talented developer, with options on where they want to work, is a potential Xbox Japan an attractive option? Even when all these things AREN'T working against you, founding a successful new studio is hard work.