MS will not give up on Japan because MS knows that losing the hardware battle in the land of the rising son is worth securing Japanese software for the rest of the world.
MS should be commended for putting up with the product-xenophobic Japanese public to make sure we could count on the best 3rd party Japanese games landing on on the Xbox and Xbox 360. MS will almost certainly put just as much effort into Japan and maybe even step it up. The brand keep growing world wide and maybe if they keep pushing it the Xbox will finally stick like Apple finally did. It took a long time to convince the Japanese to catch on to what the rest of the world had already found with iPhone and iPad. MS probably knows that if they drag the Japanese kicking and screaming far enough they will eventually understand why the rest of the world loves Halo so much.
