At a press conference today, Microsoft announced that Hironobu Sakaguchi's development studio Mistwalker is working on two RPG titles for its next generation console, codenamed Xenon. While Mistwalker will be in charge of the games' scenario, music and design, production and sales will be handled by Microsoft. Up to 150 developers are working on each game. Furthermore, it was confirmed that the two untitled games will support online play in some form and make use of computer graphics technology.

Previously, Sakaguchi had confirmed that he was working on a strategy RPG title for Nintendo's new DS handheld.

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