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There's a lot of hate in this thread for MS and what happened in japan. For me, the truth is that they really tried, and it hasn't worked like they wanted simply because the japanese are inherently resistant to western consoles and games, and also haven't jumped like crazy at the HD bandwagon.

You can't tell the 360 doesn't have great games, it does, it works well, has the best online, and MS did try hard with japanese exclusives, even though the quality / quantity ratio isn't the best.

The japanese market is in a weird state these last few years, but ultimately, I think Xbox will never get traction there because it's an american console.