I think in the final months many were just hoping to get a better deal than unconditional surrender. They would have liked to hang onto a lot of the conquered territory, but that wasn't something they would keep on fighting for. Their main concern was maintaining the Emperor. To that end, they tried very hard to get Stalin onside. Once it was clear that this would not happen - late on 8 August, with troops pouring across the border of Manchukuo on 9 August, about an hour after the declaration of war - the decision came closer, but the comprehensive routing of the Kwangtung Army in the days immediately after the invasion began stunned the Emperor and emboldened those who did not value fighting to the last man.
A brief summing up of the first week of the Manchukuo campaign:
"'During the seven days of fighting the Soviets advanced 210 kilometers and prevented the Japanese from reinforcing the Kwangtung Army defenses in the south. The support of the Amur River Flotilla was a key element to this success. The Amur River Flotilla transported 91,000 soldiers, 150 tanks, 413 artillery pieces, 3,000 horses and 28,000 tons of supplies to the troops in combat.[46]
Throughout the campaign, especially in the Trans-Baikal Front and 1st Far East Front zones of attack, the Soviets continued to use tank-heavy forward detachments to quickly penetrate through and bypass Japanese defensive positions. Encircled and cut off from any possible reinforcements, follow-on forces methodically overwhelmed the defenders with massive air and artillery support in close coordination with the Soviet infantry. As a result of the Soviets' meticulous planning and bold offensive action, they took 594,000 Japanese prisoners including 143 generals, with 20,000 wounded. The Kwangtung Army suffered over 80,000 men and officers killed in combat which lasted less than two weeks. In contrast, the well- prepared Soviet Army had 8,219 killed and 22,264 wounded.[47]"
The author of that article quotes Lester Brooks, Behind Japan’s Surrender on the role of the Soviet campaign in Manchukuo as a factor in the decision making:
'Prime Minister Kantaro Suzuki asked General Sumihisa Ikeda of the Cabinet Planning Bureau, and who had recently arrived from the Kwangtung Army, if that Army was capable of repulsing the Soviet attack? Ikeda replied “the Kwangtung Army was hopeless, within two weeks, Changchu, the major city in central Manchuria, will be occupied by the Soviets.” Suzuki, then asked if the Kwangtung Army was really that weak; when Ikeda replied it was, Suzuki realized the game was up.'
To illustrate the speed of the advance and the advantage of surprise, the Soviets were forced to halt on 12-13 August on the Trans-Baikal front only because their rapid advance (over mountainous terrain the Japanese considered impregnable) had led to supply line problems, and once they quickly sorted themselves out they resumed their virtually unopposed advance on the 13th. Tactics arising from the concept of bushido (fighting to the death, if necessary by suicide attacks) were no match for a vastly superior force in terms of men and weapons and meticulous planning.
The US needed the Emperor just as much as the Japanese wanted him. The US went to great lengths to ensure no accusation of war crimes would ever taint him. The Japanese War Crimes trials were to a large extent a farce, with Tojo taking one for the team, as it were.