I think that critical mass hasn't been obtained yet but mrstickball has a great point that he thinks hardcore japanese gamers are starting to take notice.
Microsoft is very savy on the marketing side. They used the same american tactics in japan initially for 360 and it was a failure. They are changing to better suit the market and they are concentrating more on Japanese content. A turn around won't happen over night, but I think strides and improvements are being made and once the japanese consumer catches on sales will improve... They probably don't have a shot at 1st place in japan this round, but 2nd place is still achievable (though highly unlikely)... It is best Microsoft uses this generation to figure out how to sell to the Japanese and then sell peoperly to them next gen.
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