I think that Microsoft needs to realize that not everyone in Japan is an otaku that plays JRPGs. As more obscure those titles might be in the US, they're still pretty obscure in Japan as well. It's only the Otakus and the older men that want to experience nostalgia that will buy mech games, anime games, etc. If they only care about HARDWARE sales, they need to appeal to the casual gamers in Japan. They've totally dominated the US by targeting casual gamers (as in those who only buy Halo 3/COD 4, GTA IV, Rockband/Guitar Hero, +Sports games).
Take a look at the commercials for PS3 in Japan (it's even more interesting when you see the US commercials, and how they were targeting a more hardcore audience. I think they should really advertise to the casual market that the PS3 is the best blu ray player around, and that it's a two for one package):
http://www.youtube.com/watch?v=UACcjTciEX8
