''Rockstar has confirmed that Bully, currently in development at the company's Vancouver studio, will be an exclusive title for PlayStation2. The news comes as recent trends show a massive drop in support for Microsoft's original console from many developers and publishers.''
Maybe you don't keep up with the gaming world news....but Take-Two,the parent company that owns Rockstar, has been having financial difficulties (altho they look to be getting better by the stock reports).
Xbox didn't drop Bully because they were intimidated....R* felt they'd lose even more money for itself and it's stockholders making the game for the original Xbox,which is dwindling in sales and never even sold that well in Japan to begin with.