Poseidon said:
It's smaller than the PS3, yet, it got outsold by the PS3, so that argument is moot. As of now, there is most definitely more software available on the 360 than the PS3, and with titles now becoming multi-platform, and others still having a question mark above them, why are the Japanese still preferring the more expensive console over the cheaper one?
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PS3 doesn't have a power brick or wireless router sticking out. Also, games like VF5 and Gundam Musou are not on the 360 yet. Japanese also know FF13 will be on the PS3, and as well as MGS4. They also probably assume that all of their favorite PS2 fanchises will see sequels on the PS3, even if some of them are going to the 360 (but not the Sony ones, of course). Finally, most 360 exclusives are shooters.