http://kotaku.com/5304192/capcom-developer-vs-from-software-developer-on-xbox-360

Different folks, different strokes. Capcom producer Jun Takeuchi (Resident Evil 5, Lost Planet 2) has good things to say about the console. What about From Software's Masanori Takeuchi?

According to Capcom's Takeuchi, when Capcom was developing Devil May Cry 4, he thought this was the Xbox 360's limit. But again, when they were making Resident Evil 5, the game fit within those boundaries, and ditto for the upcoming Lost Planet 2. "I was like," says Takeuchi, "'This hardware is deep!'" He goes on to say that he was surprised and that "This is good hardware."

While From Software's Masanori Takeuchi is not disparaging about the Microsoft hardware — but rather, the situation it puts Japanese developers in. According to Takeuchi, developing for the Xbox 360 is "difficult". "Japanese game makers want to make games for Japan," he explains. But things like the low install base in Japan mean that developers must think about creating titles for a larger audience. "The fact that you must make games for a global audience," he explains, "makes the Xbox 360 a difficult platform."

Hey, in this sluggish Japanese game industry, making hit games at home isn't easy either.

well after Ninja Blade flopped and Demon's Souls became slipper hit, From Software know which console to support :S

I guess the line between flop and hit is a thin one.

I love them, but From Software should be used to flopping by now. Their games almost invariably do.

So... 360 hardware = good... 360 install base in japan = bad??

The console which has a userbase of 8 million in Japan??

So let me get this right.....
From Software said..."Hey MS we have big game for big American's using big Unreal tech"
Or was it their dash at a quick buck instead of building the game from scratch?

Japanese developers have to realise that developing games basically just for Japan is not a good thing anymore. Developing costs increased and the Japanese console-market decreased. On the other side, the western market in Europe and America increased.

All the big (Japanese) franchises are that big, because they were successful in Japan AND Europe / America. Check:

• Metal Gear Solid 4 (just 16.74 % of the worldwide sales came from Japan)
• Resident Evil 5 [both platforms] (13.06%)
• Devil May Cry 4 [both platforms] (15.83%)
• Street Fighter IV [both platforms] (8.12%)

That is the reason that made FF XIII going multiplat. X360 is a very successful console in the west and Square Enix wants to get as much sales as possible.

Games designed just for Japan did not do very well this gen. Star Ocean / Last Remnant / Infinite Undiscovery are all around 500k.
White knight Chronicles did not do that good either with 350k units sold. The release in NA and Europe might push this to 700k though which is decent, but nothing to go crazy about. Same thing for Lost Odyssey.

Tales of Vesperia is at 320k, Valkyria Chronicles at 500k. This simply is not enough.

For HD-Games - you just need the western market.

Yeah 360 will always sell great in the west.