The groundwork for the next Xbox is being laid in Japan, though Capcom doesn't seem too happy.
In a recent Bloomberg report, a Square Enix representative revealed that the company is currently considering developing titles for the next Xbox. The same article also reveals that Microsoft has recently made offers to Capcom that would help to recoup the development and distribution costs associated with developing more Xbox-specific titles. Capcom has since rejected these offers, expressing a lack of interest in developing further Xbox titles.
While the Xbox has sold well elsewhere, it has yet to make an impact in Japan. This has been attributed to many different elements, ranging from the console's physical size to a lack of titles relevant to the Japanese gaming audience. "You could probably argue that if we had a Japanese-centric role-playing game at the beginning of the console life cycle we would probably be in a better position today," said Peter Moore, Vice President of Retail Sales and Entertainment for Microsoft.
News source: GameDaily
