Xboxyde has scored actual in game footage of the would be killer app for Microsoft in Japan, Blue Dragon. Split into two parts, the video shows off the game's graphics and combat system. For the RPG buffs out there, it's worth noting that battles are not random and that enemies can be seen before the player decides to engage them (or not). Beyond that, the game is very nice to look at. We know that a lot of readers will disagree on this point, but these graphics are solid and polished beyond belief. The gameplay, on the other hand, looks fairly standard. There are big chests with items in them, turn-based battles, summoning techniques, and a boss battle (complete with craptastic rawk music).
Granted, the quality of the video makes it difficult to pick apart the intricacies of the combat, but it all looks pretty traditional. Then again, it also looks an awful lot like Dragon Quest -- a game so popular in Japan it's practically a national holiday when a new sequel is released. Will bundling Blue Dragon with a core system be enough to entice Japanese buyers? Only time will tell.
Update: It looks like Xboxyde's servers are getting beaten up by the demand for this video. See the embedded YouTube video after the break.
Update 2: Fixed some weird formatting.