Given the fact japanese studios are very content with their own internal technologies, I don't see any major developer embracing this other than small to mid-size developers who otherwise don't have the resources to create technology from scratch.

You'd be surprised. More and more Japanese devs are licensing Unreal.

I don't think Japanese studios are "content". I think Japanese studios are more set in their ways, and also intimidated by or unsure that solutions like Unreal will work for them (look at what happened with The Last Remnant. That can't have increased confidence much, either.) MTFW2 is by a Japanese company offering Japanese support and is designed to handle games like Devil May Cry 4 (or at least is capable of it.) It will be an attractive option, though it sounds like at first, at least, not broadly available. This could shake things up.

Epic also gives Japanese (and Korean and Chinese) support. Of course it's not a direct Japanese channel to the engine devs, but it is support.

LP2's footage looks great! Hopefully other eastern developers will sign on to this as well, many can certainly benefit from the shortened cycle this new engine should allow for.