More than anything, though, it’s a gut punch because it sends a message. The wrong message, really. Xbox had one major studio in Japan - no more. Xbox is making deals with third parties and independent creators, yes - it’s got something in the pipes with Hideo Kojima, for instance - but like I said, the first party is your north star. It’s your best foot forward. The message becomes this: Japanese games are not a priority for us.
No amount of Spencer pow-wowing on the Final Fantasy fanfest stage with the Square Enix CEOchanges that. No amount of co-marketing money thrown at Persona or Yakuza to get Xbox versions and Xbox logos on the trailers can undo that message. Publishing a Kojima game might help a bit - but not as much as having a beloved Japanese studio in your actual stable. In the end, Kojima is just a gun for hire - whatever he makes for Xbox will be compared to Death Strandingand his big new spy franchise at Sony.
And furthermore, if you were a Japanese publisher or developer approached for acquisition, how would you rate the odds of survival for your business based on the evidence before you? Would government regulators trust that Microsoft would be a safe pair of hands for Japanese brands, big or small? In 2019, the year before the Bethesda deal, Xbox mulled over a purchase of Square Enix, not for the first time in its history. How much of Square Enix would remain now had the company pursued that takeover?
You’ve been WAY behind on japan’s opinion of PC games, it’s easier now to count the games that don’t receive a port than games that do, like Unicorn Overlord. I dreamed of having Persona and Like A Dragon on PC back then. Even the newest idolm@ster is on steam and people are making a translation for it.
Since it’s just a massive headache for niche devs nowadays they are just skipping the Playstation version altogether, like the new Bunny Garden having only switch and PC versions.