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In Japan, the 360 never had any ground to lose. It was basically dead on arrival; a few major exclusive releases gave a brief appearance of life, but they couldn't keep that up forever. Microsoft tried their hardest, but there was nothing they could have done to sell the machine to the Japanese.

In Europe, the PS3 had a far more successful launch than the 360. The PlayStation brand is stronger in Europe than anywhere else in the world. The only reason the 360 managed to put up a fight was because Microsoft slashed prices down to the ground. That was really just a stalling tactic, though; cutting prices further won't be enough to turn it around.