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There is precious little MS can do other than sit idly by while the competition respectively leaves them in the dust and catches up slowly but certainly.
We knew all along that the 360 would never sell well in Japan, and that it would sell only mediocre in the EU, so no one should be surprised.
I know 2 people who have a 360 personally, one of them recently went bust when the RRoD came a' knockin...