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I see my earlier post went ignored...

Forget the western boycott for a second, and try to take a different angle. The Japanese are boycotting a console with far fewer games that appeal to the Japanese (compared to PS3), and has a bad reputation in its reliability (RRoD). Combine this with the PS brand / Bluray (whatever made PS3 catch up to 360 in Europe), and the sales make sense.

It takes much more than just a handful of smaller JRPG's to beat the franchises of Yakuza, MGS, Gran Turismo, Hot Shots Golf, and (let's not forget) Final Fantasy XIII / vXIII.