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Why does Microsoft continue with the X360 in Japan?

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Probably don't want to piss off Japanese developers. If they pulled out of Japan probably some Japanese developers would threaten to not make games on the 360 anymore/360 successors.

Worst case scenario as Salnax said; you want to be in that market if the shit hits the fans with either Nintendo or Sony, because while they are a 3rd choice in Japan they could b the 2nd choice if someone decides to leave the market.



It's just that simple.

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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. 



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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



Japan has around 128 million people. Around 1 in 100 people in Japana haven purchased an XBox 360

USA has around 300 million people. Around 1 in 10 people in the USA have purchased an XBox 360. 



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Dark_Lord_2008 said:

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.

Given that they are still over there after six years, it's easy to believe that they're making some profit over there.  Why shut yourself completely out of a market that's making you money-regardless of how small that profit is, in the grand scheme of things?



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thehusbo said:
It wouldn't be good PR to just drop a console from a country. It's a real kick in the balls to those 1.6million Xbox owners and would make them probably just switch to Sony or Nintendo. They have to have a presence out there as well as the market can always change. Next gen Xbox may do much better.


LOL. You do know that all of those 1.6 million are just collectors right? No one in Japan has the Xbox 360 as their only console....

If the Xbox 360 got discontinue and games stopped being made for it, I doubt PS3 or Wii would get ANY increase in sales...Software will increase though.



VGKing said:
thehusbo said:
It wouldn't be good PR to just drop a console from a country. It's a real kick in the balls to those 1.6million Xbox owners and would make them probably just switch to Sony or Nintendo. They have to have a presence out there as well as the market can always change. Next gen Xbox may do much better.


LOL. You do know that all of those 1.6 million are just collectors right? No one in Japan has the Xbox 360 as their only console....

If the Xbox 360 got discontinue and games stopped being made for it, I doubt PS3 or Wii would get ANY increase in sales...Software will increase though.

pshht. Theres at least one person with only a 360. I figure a decent chunk of the 360s are sold to the thousands of US troops stationed in Japan



Because M$ never understood the Japanese market, it is quite different than the western market.



First of all the ps3 and xbox 360 are basically the same. Has the same game why would the japanese not support their own console. Not just based on their 'nation' pride but Sony has already made a name for themselves from ps and ps2.
People bring out XBOX 360 had so many JRPGs, but who would of guess that the ps3 would have less JRPGS than the 360...... I wonder why ...... M$$$$$
1 problem with these exclusivity didn't help MS was because they were release after the ps3's release, almost after 1-2 years the release of the 360.
Infinite undiscovery 2008
Lost odyssey 2007
Blue dragon end of 2006
Who knew that jrpg developers will not support the ps3 and will be exclusive to the xbox 360. Everyone already bought the ps3 in japan.