I think this could be way oversimplified. Lets not forget that since the original Xbox inception it has been littered with a myriad of issues in Japan and I think it has more to do with the lingering stigma of ; poor marketing, unappealing games, all the big hitters exclusive to Playstation, a lack of confidence in a long life, an unattractive big black box, a controller too big etc. Add this generation’s problems of hardware failures and ‘FPS/Shooter box’…they really haven’t done themselves any favours in Japan.
There is a light at the end of the tunnel though – in spite of all these issues and the anomaly to your argument is the 6 consecutive weeks that MS had over Sony. If you were to launch the 360 today – with the hardware revisions and a growing stereotype of ‘all the JRPGs are on Xbox’ – I think nationalistic pride would be scaled down on everyone’s priorities.
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