Need to change the name. The "XBox" name has to go.
Need to market towards Japan's tastes/cultutre/style. Remember the original XBox controllers? MS had aimed for North American hands and made smaller ones for Japan. Yikes.
Japanese-appealing games. The "Shooters and Sports games" stereotype will weigh the XBox down unless they make these games cool, or introduce other types of games.
There is no such thing as a console war. This is the first step to game design.







