So that billion? Does that include Microsoft pulling their heads out of their asses and asking Mistwalker to make JRPGs and games in other genres for them too? Does this mean Microsoft will set up an actual Japanese division studio and get some exclusives out of it? Great idea over timed exclusives from 3rd parties.
If it's timed exclusives again I say

no. The 360 proved that going with timed exclusives was one of the most wasteful and idiotic things Microsoft did(they might as well have just burned thousands of dollars as compared to creating their own IP's), with only a few exceptions(Mass Effect, don't know if that was an airtight exclusivity contract at the time or what).
The only exclusives from a third party I see with promise, on both Western and Eastern shores, are those Microsoft demands publishing rights for. I'm pretty sure at least a couple, if not most of, Sega's games on the original Xbox were Microsoft published.
Now, dmaul, I'm severely disappointed in you. "Outdated graphics", "I don't want to replay", I never pictured you as a graphics snob, especially given you're a professor. There are a great many games from the 8 and 16 bit era that deserve to be played repeatedly. A few that come to mind are: "Actraiser", "SoulBlazer", "Final Fantasy 6", "Final Fantasy 4", "Brainlord", "Lunar", "Final Fantasy", "Dragon Quest", "Lunacy", "Illbleed", "Skies Of Arcadia", "Jet Set Radio", "Nights Into Dreams", "Burning Rangers", "Zelda II: Adventures Of Link", "Startropics", "Phantom Crash(with effective online)", "Shadowrun"(Genesis especially), "King's Quest V", "Eternal Darkness", "Robotrek", etc. Some of these games are great to look at from a commentary standpoint and I didn't even get into some of the earlier one's that put out religious criticism. I also can't believe I forgot to mention "Suikoden" or "Shadow Hearts".
edit: Oh and I think most here have made summarized the argument for the distaste of DRM. To those mentioning that DVD's can go obsolete, the key for this type of stuff would be that at least we now have conversion devices to make copies in formats that are not currently obsolete. I would also venture to argue that if I own said game and its from an older or even current generation, if I wish I have the right to jukebox it for myself.