The two companies have been talking for a long time, but Square Enix continually shuns Microsoft. It's no secret that Microsoft has done well in the console gaming sector. The company came out strong with the first Xbox and challenged Nintendo for the number two spot. With the Xbox 360, the company has garnered itself a one year head start against competition from Sony and Nintendo, and is looking to make a strong run at holding the number one spot. However, there is one area where Microsoft has been severely lacking and that hasn't changed at all from the Xbox to the Xbox 360. We're talking about Japan and support from Japanese third party companies.
There are a lot of Japanese companies who are offering solid support for the Xbox 360, but there are still several who seem to be hesitant about support. The primary company of focus here is Square Enix. In all honesty, it doesn't matter if Devil May Cry 4 is exclusive to the Xbox 360, or if Microsoft can secure Metal Gear Solid 4 for the 360. The Japanese gaming audience is shifted by two game series: Final Fantasy and Dragon Quest. If Microsoft were able to secure an exclusive on a current Final Fantasy or Dragon Quest title within the main series, the announcement alone would move Xbox 360 consoles in Japan.