February 24^th, 2005 (6:12pm) - Microsoft announced today that Mistwalker Studios, the studio founded by Hironobu Sakaguchi, former president of Square, has two unnamed projects in the works for the follow up system to the Xbox (Xenon/Xbox2/360, or what have you).

The hope for Microsoft is that this move will help them succeed in the Japanese market, where it’s Xbox console did poorly.

"Sakaguchi-san has taken role-playing games -- traditionally a niche market -- and introduced them to a broad and diverse audience across the globe," said Peter Moore, corporate vice president of Worldwide Marketing and Publishing at Microsoft. "We are ecstatic to work with Sakaguchi-san and celebrate what this news means not only for Xbox, but for gamers worldwide."

"I’m excited about the two epic game titles we will be developing," Sakaguchi said. "A number of talented creators have signed on to help develop these games, and I’m confident we will be able to create games that provide gamers with a new kind of thrill.

"Microsoft’s cutting-edge technologies in the next-generation platform will allow me to bring to life an array of ideas that I have had for many years," Sakaguchi added. "I want these games to be alive with a new vision for gaming and vividly depict new characters that will transcend the game, find a place in the hearts of gamers, and make time spent with my games a fond and long-lasting memory."