Well it wouldn\'t matter to me--I dont\' like the FF series anymore (has gone stale for me, CC is better IMO), but in Japan it would mean instant credibility as a console. No console can survive without square in Japan and EA in the US. Still xbox has a long way to go to catch up to ps2.
With MG, FF and DOA the Japanese audience will not be able to shun xbox so easily.
This race could get interesting though. If square does start supporting the xbox I will have to think long and hard about a purchace. Right now, the only thing that worries me is the (somewhat) uncertain future of the console, but if MS has Square...
As it stands right now, I am more interested in Halo and DOA than any PS2 exclusive (J&D looks great though, although I do think that Munch is a worthy replacement).
MS with the all mighty dollar is making things happen in the video game industry.