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Because when it launched it had the best value if you wanted to play hd games (cheaper than ps3 for hd games). and at the end of the day that matters to americans more than some brand they are buying. Its all about the value. So unless you felt the need for blu ray movies (which it appers not as many did) you would of chosen the 360.

It is more expensive in the long run for online play, but you get so much more and the community is so much more vibrant that from a gamers perspective it would worth the cost. the value was there for it as it was directly related to gaming.