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@jarrod: I think it's a misconception that HD doesn't matter in Japan. They love their high def televisions (I believe they have: fastest and most widespread HD adoption in the world, first country to have HD broadcasts, first country to cease analog broadcasts, most widespread subscription to HD satellite service, etc).

So... to a greater degree than the rest of the planet, Japan's populace is used to having HD images in their home. I think in the final analysis, this may be one of the key reasons why Wii sales have declined since launch in Japan (as opposed to everywhere else): they've always wanted everything attached to their TV's to be HD (including their game console) but they also wanted it to have a sane price.