Or it could be that the barrier to entry in Europe isn't quite worth the costs in some, if not many, instances.
Why do you think Europe gets passed over on video games from Japan too? It's not because of fat Americans, or the price of XBL.
It's because in order to do business in mainland Europe, you need to translate everything into English, French, Spanish, German, Dutch, Italian, Norwegian, Swedish, Finnish, Danish, Czech, Slovak, Russian, Ukranian, Portuguese, Hungarian, Polish, and Greek for starters. And you have to pass the BBFC, PEGI, and USK for ratings boards (that I know of).
All of that adds up to extra cost of content. And if your trying to debut a small piece of content onto XBL, it might make it not as worthwhile as one may believe.
However, with Europe becoming more intergrated, and a strengthening economy, and English being a more universal trade language, it'll become more important.
But then again: it's vastly easier to just put the content out for the American and Canadian audiences. Huge install base, everyone speaks English for the most part, and there's 1, unified, ratings board. So it's a much lower barrier to entry, and that's the key.
Back from the dead, I'm afraid.
