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please, nationalism ("racism") has nothing to do with why 360 isn't competing with Sony in Japan.

Every company has a hard time starting in Japan. Brands have a powerful hold on the consumer and it takes a while for companies to seal their place in the market, and even then, they could be associated with something poor. If you don't understand, I'm not going to explain, but brand loyalty beats out almost everything in Japan. 

And don't get it twisted that Japan doesn't like foreign product. Japan very much adores foreign culture.

Every time I've gone to Japan, I brought lots of clothes from thrift stores. Bright tees with american product logos on them, and food, etc etc. People in Japan will pay top price for American stuff. What they do not enjoy, is an American product being foisted upon them. And MS is doing it in a very ham-fisted way. They had a very lackluster RPG buying spree and did not support their product as well as they should have. The controllers are also large compared to others, and much heavier. I could go on and on about why 360 does not do well in Japan, and none of it is because of nationalist, mercantilist culture.