Their relationship and most importantly
$$$$$$$
Square is not a 1st party studio of sony yet. Yet MS can't get certain games on Xbox timed if at all..
You had it right during the second line. The reason Microsoft misses out on AAA japanese games and especially Square Enix games is because they don’t make money on their platform. Almost every major japanese game released on xbox now is on gamepass because thats the only way it makes it worth it for them to bother porting games on the platform.
Its why Octopath 2 isn’t on Xbox because they didn’t cough up the gamepass money for it. If square enix could make more money making exclusive games for microsoft they would do it, because they are a business first.
Even if they held some kind of undying loyalty to sony, it wouldn’t outweigh the revenue they would make not accepting those deals. So they gotta do what they’re doing with Kojima, go shake Hands and kiss rings over there, and prove to those devs they can be successful on their platform.
Sony already proved it over 30 years of business