Microsoft keeps their business going in Japan because it's the #2 national market in the industry, there's an overwhelming amount of game developers there and for long term strategic reasons, you basically have to maintain a Japanese presence on some level to keep Japanese content on your platform (which sells worldwide). And really, they've even carved out a decent little niche for 360 as the console for SHMUPs, youge or galgames, so it's not been a total loss. 360's going to end up tripling it's predecessor by the end of the gen, that's no small feat.