That’s -usually- the case, yes. But I think MS fumbled the relationship between them and Inti on this one.
First off, I doubt EGS is any more popular in Japan than Xbox. Yet it’s releasing onto that.
Inti gave us Gunvolt Chronicles (first time they ever gave Xbox a Gunvolt game) and Bloodstained COTM 2 (I think they may be contractually required to give Xbox these games by Igarashi’s studio though) in 2020, and were of course, about to give Xbox Gal Gun. The Gunvolt and Gal Gun things (again I’m not sure if their Bloodstained games are their call or not) seemed like they were actually starting to embrace Xbox a bit more. They explicitly stressed in their cancellation notice that the Gal Gun’s development was completed for Xbox, but MS wasn’t letting them release it (as is, anyway). Waiting until certification to block it despite seemingly allowing them to advertise it for Xbox the previous months before probably really did tick Inti off a bit. MS was more or less forcing them to alter the game (meaning more development costs and time, on a version that wasn’t gonna sell well in all seriousness) while Nintendo (Inti’s “best friend”, they make a lot of their game’s Switch first, other platforms later) was letting them get away with anything allowed by the ESRB’s M rating/CERO’s equivalent. So I can understand Inti if they decide to not release on Xbox anymore.
Anyway, my point is, if Xbox wants to get more niche JP devs on board, doing the same things Sony is doing to drive them away from Playstation isn’t exactly the thing that is gonna attract them to Xbox.