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Despite the best efforts of MS and affiliates, the 360 never took off in Japan. It just doesn't have the image, no matter how many good games it gets (it is, after all, the best JRPG console of this gen so far imo).
Japan as a whole has been a slow and dreary market the past two years or so and only handhelds seem able to move any significant numbers at this point.

Nothing new and certainly not something that hasn't been argued and debated to death on the forums. With the Japanese market being so slow overall, MS don't need high sales there, they have good NA sales and decent Eu/Others sales and are doing fine!