There are so many reasons I'm sure xenophobia plays a part but no more then it gives 360 an advantage in USA, the fact that it's not as much cheaper there as it is in NA is another thing, xbl service is crappy in japan and MS charges for it theres also the failrate and the lack of wifi for the original 360, the lack of exclusives that they care about is another huge one the advertising for 360 isn't in japan either I'm sure I'm missing a few but I believe if MS addressed all the problems aside from the xenophobia at the start of the gen it would have done much better, but they didn't address any of them and their efforts in japan always seemed half ass







