Doesn't MS need to do a better job in Europe?

[Reasonable]

I think they do a pretty good job in Europe.

Remember, PC gaming for FPS in much stronger in Europe than US, weakening a key element of the consoles appeal. Also, the brand was weak at launch (TBH practically non-existent) and in Europe I believe RROD was seen as much more serious than US - extended warranties don't cut as much mustard in many European counties, with high failure rates seen as very off putting. Also, a lot of popular European franchises are associted with Sony.

From that position, and looking at Xbox last gen, I'd say MS has done pretty well in Europe actually. It will sell less than PS3 in the end but the numbers are better than I would have expected when the 360 launched - and I can't help wondering if they're better than even MS would have forecast at launch unless they were being hugely optimistic.