I originally thought so as well. After reading The Rising Sun, by John Toland, you realize that the social unrest in Japan was so crazy leading up to 1936, that if the Emperor made a few different choices, it could have happened.
Social unrest by itself doesn't translate into communist revolution. A number of months ago I actually cracked open a book on this question, the detailed statistics and facts relating to the Communist Parties from EH Carr's book Twilight of the Comintern and Japan's communist party literally only had several dozen people active in it, with a paper membership of a few hundred total.
In terms of plausibility, it's about on par with English Mistery seizing power in the UK, undoing the industrial revolution, and creating a new agrarian feudal order.