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I'm surprised no one was outraged by the clearly racist OP...

The reason why the Xbox isn't selling as well is because it's seen more as a hardcore system for "otakus". Not all Japanese people are interested in obscure anime, JRPGs, and other genres (such as SO4 or Idol Master).

If you look at the commercials for the PS3 in Japan, you'll clearly see the image Sony projects and the audience they try to go for, (I think someone posted them in the thread "Did Sony forget how to market as the underdog?").