Square just shot themselves in the foot.
I don't know how much the rest of you know about Business culture (I'm an expert), but releasing your game on as many platforms as possible are huge parts of it. We are not living in a communist society where you can make a living by sending people to the gulag. If you fail to make money here in the west, you will go bankrupt, and there is now way to recover from that.
What this means is the xbox crowd, after hearing about this, is not going to want to purchase FFXVI for either system, nor will they purchase any of Square's games. This is HUGE. You can laugh at me all you want, but Square has alienated the entire market with this move.
Square, publicly apologize and release FFXVI on all platforms (inlucluding the OUYA) or you can kiss you business goodbye.