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Nobody has mentioned that Japan is currently in an era of handhelds.

For example this generations handhelds have outsold all 3 consoles by a ratio of 2.57 in Japan.

Whereas in NA handhelds have a ratio of 0.84 and in the EMEA regions its 0.96

 

I'm not saying that is why the country of Japan doesn't love xbox I'm just saying that it doesn't help that the console market is down. It is quite possibly one of the major markets that just doesn't have the room for three competitors. I think MS has done it right and left it as being just a niche market. Their only other alternative would be to basically lower the costs in Japan by basically subsidizing the market from their success in NA.