Microsoft's MSP conversion policy means Japanese XBLA devs get paid in relatively weak dollars
That's why there are so few Japanese XBLA games, says G. Rev president.
Microsoft's confusing MS Points currency system doesn't work in the Japanese' favour, according to Under Defeat HD developer G.Rev's president Hiroyuki Maruyama.
Maruyama took to twitter to explain the situation. He said (via XBLAFans), "A strong yen and a weak dollar is very damaging to us because XBLA and DLC are 'export products.' That's why Japanese developers avoid making games for Xbox 360. When we released Strania on XBLA, the rate was 80 yen per dollar. (wry smile) If Japanese people buy our game in MSP, we receive in dollars!"
While the dollar has gone up in value since then (it's currently ¥88.62 per dollar), the yen is still doing better once converted into Microsoft Points. You see, 1600 MSP is worth $19.99 in the US, but retails for ¥2,240 in Japan, i.e. $25.32 when converted. When the percentage of sales owed to the developer is disbursed, Microsoft calculates it based on the original US dollar value i.e. $19.99 rather than what the consumer paid for it.
According to the report, other developers shared a similar story, but chose to remain anonymous for obvious reasons.