Square just shot themselves in the foot.
I don't know how much the rest of you know about Japanese culture (I'm an expert), but honor and shame are huge parts of it. It's not like it is in America where you can become successful by being an asshole. If you screw someone over in Japan, you bring shame to yourself, and the only way to get rid of that shame is repentance.
What this means is the japanese public, after hearing about this, is not going to want to purchase FFXIII for either system, nor will they purchase any of Square's games. This is HUGE. You can laugh all you want, but Square has alienated an entire market with this move.
Square, publicly apologize and cancel FFXIII for 360 or you can kiss your business goodbye.
Thanks for selling out your fanbase S-E. I poured probably thousands of dollars into your lap with your offerings on Sony platforms. Your support of the PS3 was instrumental in my purchasing one. Now you're murdering your flagship series for a quick cash grab. Why? Because you have no faith in your fans. Konami turned out all right with Metal Gear, what makes you think we'd be any different for motherfucking Final Fantasy? I and millions of others have rushed out to buy your major releases precisely at release time and time again. I'm certain many of us were still poised to do so, and still are.
I'm not happy that you drank the kool-aid. You had no reason to get into bed with Microsoft and take it this far.