A job listing indicates that Japanese developer feelplus Inc. is working on a "large scale RPG" for Microsoft.
According to Kotaku, a classified listing on Japanese job site DODA reveals the feelplus Inc. is working on a "large-scale RPG for Microsoft."
feelplus Inc. is a subsidiary of AQ Interactive for whom a job listing has appeared, advertisting for a "Game Designer [3D motion, etc.]" although this isn't necessarily for the Microsoft title.
feelplus Inc. has previously worked on RPGs including Blue Dragon Plus, Lost Odyssey, Star Ocean: The Last Hope, Infinite Undiscovery, and is currently working on Ninety-Nine Nights II.
Microsoft has long been pushing for Japanese RPGs on the Xbox 360 in an attempt to get the console to compete in Japan, and this is likely another stage in that push.
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