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Japanese developers would stick with a xbox not in their country anyways if they care about western sales.

MS already has the foundation there, so it wouldn't be hard for them to only send a few thousands units here and there to retailers in Japan.

They can also cut the price by a lot to the point where they make little to money off the 360 in Japan, since its a small amount of units sold it wouldn't be a big issue.



It's just that simple.