Not saying the port made it bad. I just thought the game was not good and that i wasted a lot of money. The fact that episode duscae ran like ass did not help either (Still really like it though). I am just of the opinion that type-0 was the WRONG game for them to judge the xbox market off of. Kh is the better choice and xbox gamers would benefit a lot more if the rumored remaster comes to that system as well. More than likely won't though
I don't know whether SE is using Type 0 as a benchmark or not. I doubt they even regret announcing the Xbox version of KH ahead of time because whatever little loss it may incur if any will probably be easily covered by the profits generated by the PS version anyway.
However, it seems like some people like you are trying to find extra reasons why Type 0 didn't perform well on Xbox - it's $60, it's a psp port, it's a bad game. If any of those were true, it should have performed poorly on PS as well, unless you hold some sort of warped view that PS owners are suckers and that Xbox owners consist of more "discerning" customers. When really it comes down to fanbase size in the respective install base.