hire a designer for the system

Do what nintendo did, have two separate names for the console (family computer vs nintendo entertainment system). Have sega assume the name of the console in Japan so there is no microsoft stigma to it.

Blow up PlayStation facilities.

Bundle used girl panties with every console.

Beat sony? LOL
Beat nintendo? LOLOLOLOL

Is that enough? Perhaps pretend their system is by sega.

Nothing. Just hope that they can improve over what 360 did and offset sales with NA and Europe.

Find a way to convince most japanese third party to make games exclusively on they console. Just like nintendo did with monster hunter. It will not work if those exclusive find they way to an other console (even on psp or wii).

They could start by making sure nothing like RROD happens. That could have really affected it over there for all we know. Other than that....just make sure to get the Final Fantasies, Monster Hunters...etc.

Find ways to get Japanese developers to support them. Still they wont beat sony in japan but they can continue to grow in Japan.

Pretty much nothing.

They can however continue to slowly increase their market share. The 360 sold a lot more in Japan than the original Xbox. They'll likely never be first or even second in Japan but they can at least make a dent