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In Europe I think better localization and better lineup of casual games have been major factor between Sony and Microsoft. MS is still trying to sell "all family games" for XBox without any localization at all for smaller countries of Europe and almost all casual games have been design only for US markets. If idea of the game is that whole family can play it, then you need to localize it for every market area.

Sony did localize even Heavenly Sword (witch was quite hilarious). Local versions of Buzz and Singstar series have always been success in northern Europe.