Different audience.
Don't get me wrong, as a 360 owner I love the ability to play quality RPG's. I didn't really have that luxury on the original xbox.
But I didn't buy the 360 TO play RPG's. I bought it because I am an avid FPS player and have a Halo tattoo that takes up half my back (I know, some laser surgeon is going to be very rich in about 20 years)
When I bought the original playstation, it was strictly to play Final Fantasy 7.
When I bought the playstation 2, it was for Final Fantasy 10.
I guess what I'm saying is, while Microsoft should get credit for attempting to saturate the Japanese market, unless eastern cultura starts embracing Halo and Gears of War, it's not going to happen.
Besides they should just buy out Sony. It would be like billions of fanboys cried out in union, and were suddenly silenced. /s
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