360 in Japan isn't going anywhere, but to say that's a reason to not develop for it is silly. Unless you've got a robot game or dating sim, 3/4 of your potential audience is outside Japan. As for the PS3, it will catch on once it gets a price drop and actual games, but again, Japan is not the determining factor. Then we get into another problem. Of this large market share, how much of it belongs to Nintendo? 83%. Despite the fact that Sony's getting slapped around in Japan and has a lot fewer games, total third party game sales are only 7% higher on Wii. If the system manages to reach DS levels, that's not really a big problem, but as it stands now, Nintendo's dominance is too pronounced for anyone to abandon the PS3. Both PS3 and 360 can hit $100 at some point. Pricing is definitely a factor in Japan, though the fact that they only get one game a month is also a big problem. As production steps up and the price comes down, the system will sell a lot better. Of all the strong publishers, who are they favoring? Sony. Best case for Nintendo would be getting equal support. Early lead or not, nobody's making any rash decisions.
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