Gaia Theory said:
Duckroll - you can claim to have a lot of knowledge about the XS series, but I'm not so sure you should be claiming to have insight as to why development staff left.
Why not? We do know quite a bit.
There are many possibilities. Have you ever thought that, perhaps, Takahashi wanted to move on? Maybe he wasn't happy with how his 'beloved' project was turning out. Maybe he didn't like the direction he had taken the series. Maybe it wasn't living up to his standards?
Takahashi wanted to move on to what? Takahashi was as passionate about Xenosaga as Yu Suzuki was about Shenmue. Obviously things didn't turn out well. Aside from your first option, the remaining 3 options are all negatives that support what's happening so yeah, but wait you're mistaken, Takahashi didn't leave!
Mitsuda is one of the most sought after composers, he could be very busy and he might have chosen not to work on the series after Takahashi left - like T3, without Cameron, Linda Hamilton and Furlong opted not to get paid. They moved on of their own free will.
Mitsuda has posted before on his diary that he would have loved to compose Xenosaga Ep2 but he is unable to due to Monolithsoft. It is left unclear if they simply did not ask him or if he has a disagreement with them. There's no speculation here, he just wasn't busy oh and Takahashi didn't leave!
Demonizing Namco for continuing a series that has sold well for them, and claiming that Namco is responsible for parts of the development staff leaving isn't fair to the company or the people involved. We have no idea why they left. Maybe it was a little bit of pressure from Namco AND the fact that they weren't happy with their creation. Who knows? We certainly do not.
Oh no I think you misunderstand. Takahashi did not LEAVE. Takahashi lost power at Monolithsoft. Who "left"? Kunihiko Tanaka, Yasunori Mitsuda, and now Soraya Saga. Out of these, only Soraya Saga can be said to have left of her own free will if even that.
Maybe I should explain the XS situation to you before you think that we're SPECULATING on anything. What happened is Takahashi and his wife Soraya Saga writes the design plans and screenplays on Xenosaga and then Takahashi directs the game using his key staff from Xenogears to create the same feel, worldview and atmosphere. XS Ep1 is crafted with love and even featured an awesome Limited Edition Box version with an excellent action figure, a pretty nifty keychain, a designs book and a binder.
After XS Ep1 "flopped" in Japan, and I say flop not as a speculation but as a QUOTE from a Dengeki interview with the XS staff that said "Yes the sales have been disappointing, but we promise we will not forget the fans.", the entire Xenosaga momentum DIED. We're talking about a game series that was planned to be out once every year for 6 years and this was mentioned in a press release. The game had tons of advertising and whatnot in Japan. After it failed to meet sales expectation the entire engine died.
After XS Ep1 sold rather well in the US, eventually they announced a fan conference to announce Ep2. What was announced was that Takahashi would be taking on a mor "advisery" role in Ep2 and would not be directing. I'll give it to you that at this point if we say he was demoted because of Ep1 we would be speculating, he could have just wanted fresh blood to try their hand at the game... right? But then, out of the blue, the character designer and the composer are changed! In fact, there isn't even a "character designer" credited on XS Ep2, and everyone suddenly looks hideous compared to the first game. The composers are different too even though Mitsuda said he would like to return! I wonder why, but hey I guess there's no speculation allowed, it can't be Namco can it? Nope. After all, it could just be Takahashi trying a new direction, I mean I'm sure he's still in-charge of the story and the screenplay at least, and advising the team so what could go wrong?
Fast-forward a few months, Xenosaga Freaks is released, a series of minigames and graphical adventure comedies packed with a XS Ep2 demo. It's obvious Namco is milking the series now and making it less serious than it should be. But no harm done, it's all in good fun, XS Ep2 will NOT disappoint! Fast-forward a few more months. XS Ep2 is released. It sucks donkey balls. It's 20 hours long. The game feels nothing like XS Ep1. The battle engine is retardedly slow. There are NO minigames. The writing stinks. Takahashi isn't even created with the actual screenplay. The cutscenes feel far more actiony and the new characters have zero development. The project screams low-budget rush-out-of-the-door development. The characters are still fucking ugly. To add insult to injury, the even MORE expensive Limited Edition Box for XS Ep2 features what can only be described as a figure that was DELIBERATELY made disgustingly ugly. At this point, Soraya Saga is already bitching about it on her blog. She updates her work profile info frequently to reflect how little she and Takahashi had to do with the game. Even before the game is out she specifies that the screenplay is "heavily adapted" by Monolithsoft. So we're not assuming anymore, one of the two key persons responsible for what the series is is telling us herself "it was taken out of my hands".
Moving right along, XS Ep2 flops terribly in Japan, and Monolithsoft announces XS Pied Piper. A game they bill as WRITTEN BY ORIGINAL CREATOR TETSUYA TAKAHASHI. Wow! But wait, it's a fucking cellphone game. I guess they don't want to give him much budget. Anyway the game supposedly has awesome writing and so forth. Soraya Saga at this point updates her blog again to mention that she and Takahashi worked on Pied Piper's original story and it was only "mildly adapted" by Monolithsoft. Then as the final chapter is about to be released, she updates with specific scenes Monolithsoft added that weren't in the original script. These are consistant with some pretty random WTF events in XS Ep2 which made fans pretty pissed because of their poor implementation and writing.
Subsequently Soraya Saga declares that she has QUIT the series, and as all fans will notice, there's no "Official Designs Materials" book like there was for Episode 1. Why? Because books like that are usually put together by the core development team based on how much more they have to offer to fans from working on the project. Obviously there was no love at all in XS Ep2, this is not speculation, this is from reading how jaded and angry the creators are at Namco.
So I don't know, you tell me, how much is guesswork and how much is Namco just fucking with us?
Edit: For general knowledge, Tetsuya Takahashi owns a 2% stake in Monolithsoft, while Namco owns a 94.6% stake. So technically he can't be "fired" as he is a shareholder. But as it stands now, he has no more power at the company like he once did when XS first started.