Why does Microsoft continue with the X360 in Japan?

[justinian]

sales2099 said:

Dark_Lord_2008 said:

Over 6 years since its launch The X360 has sold only 1.6 million units. At around 250k average per year in Japan. The original XBox in 4  years did not even sell 1 million units in Japan. XBox and X360 combined sold around 2.5 million units sold in Japan in 10 years.

Why does Microsoft continue with the X360 in Japan?

IMHO from a business perspective it would be more profitable and cost effective for Microsoft to abandon the Japan market. Wouldn't it be more profitable and cost effective for Microsoft to sell in all other regions outside Japan?

Feel free to shed light on this issue.

Why does MS even bother releasing the 360 in Austrailia? Fun fact, the Austrailia 360 userbase is smaller then Japan. 

Just because its not popular, that still 1.6 million 360s sold. Every market is still a market. 

That's a good point although it's not quite the same. It's all about getting back what or more than you put in.

MS can make an educated guess on how much to spend on marketing in Australia and how much they expect to get back in profits.

Australia has a population of around 21m, maybe 22m so it's a relatively small market.

But as you correctly said it still a market.

It's all about the potential. Japan with 128m people (and a top world economy by GDP)  is a far larger market and the marketing there over the years have been huge to reflect this with little reward.

So whereas Australia might turn a dollar in profit many find it hard to see where that dollar will come from in Japan, hence the question that so many financial analysts are asking is this and why MS release a response last year.

http://www.eurogamer.net/articles/2011-08-18-ms-responds-to-xbox-360-in-japan-concern