There's a lot of good insight here as to what Phil would like to achieve with the Xbox Brand in Japan. Going by the entire interview (Full transcript at the link). It sounds like he really wants to get things back to the 360 days of the brand. As there's talk of making the brand bigger there, even if it won't be the "winner" in that region.
As someone who recently visited Japan, it was quite apparent just how bad the X1 was handled for everyone involved in the area. It was more common to see 360 titles from 10 years ago than it was even brand new Xbox One title. So anything that gets us back to that point and brings back the titles skipping the platform due to no local presence for the developers is nice to hear, as it's understandable that you'll never be able to get everyone to support no matter how hard you try (Which he talks about as well).
More at source
So our market in Japan for Xbox is important to us. Obviously Sony and Nintendo both strong Japanese companies have done a great job… I don't know that we're winning in Japan any time soon, but the position that we have in Japan today for a platform is unacceptable to me.
We're gonna do a much better job with this next upcoming launch of not waiting ten months to launch in Japan like we did last time. We're gonna make sure that our services like Game Pass and xCloud are there so people have access to them.
I think what you're asking about is can we have more home-grown first-party content that's developed there. I'll just say I think we can. I'm not announcing anything, but I think the Japanese market is specifically important because of the creative community there, because of the gamer community there, and I want Xbox to mean more there than it does today.
That means working across a bunch of different fronts to make that possible, and it takes time. As I said, I'm still gonna see some things getting announced that aren't on our platform, and I'll cringe every time that happens, but relative to four-five years ago, I feel good about our progress, and I definitely know that we're in this for the long run in that market. In all the markets, and we want to continue to increase the relevance and the importance of Xbox to people.
This is taken from Gamertag Radio (Thread Here - https://www.resetera.com/threads/a-discussion-with-phil-spencer-gamertagradio-1000.169301/)
With the transcript from Twinfinite (Link here - https://twinfinite.net/2020/02/phil-spencer-discusses-japan-xbox-series-x/)
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