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Well, I must say 2 things about this discussion:

1 - As many people said before, the Western market is far more important than the Japanese market (around 14 times bigger, regarding home consoles' videogames). And, if we consider that Japanese people almost don't adhere to Western products, then I would say the difference is 26 to 1 (at least, that's my estimate for Western videogames). So, yes, we could say Japan is significant. Perhaps France or even Spain is more relevant to the Wester industry than Japan.

2 - I don't agree with the title. Microsoft invested on Japan like Nintendo never did with the Western (taking into account the size of each market and company business). Microsoft did in Japan much more than they should...until 2010. That was when they realized the same investment volume on the Western market would produce much greater results and thus Japan was a wrong bet. The outcome was a better Christmas season than PS3 (even though PS3 was outselling X360 on that year) and much closer results in the following months, while in Christmas seasons they were actually outselling Sony's console. This shift in the Microsoft's strategy is the only reason why X360 is still in front of PS3 in total hardware sales. Who would blame Microsoft for that? They did for Japan what Nintendo never did for the Western.



Prediction made in 14/01/2014 for 31/12/2020:      PS4: 100M      XOne: 70M      WiiU: 25M

Prediction made in 01/04/2016 for 31/12/2020:      PS4: 100M      XOne: 50M      WiiU: 18M

Prediction made in 15/04/2017 for 31/12/2020:      PS4: 90M      XOne: 40M      WiiU: 15M      Switch: 20M

Prediction made in 24/03/2018 for 31/12/2020:      PS4: 110M      XOne: 50M      WiiU: 14M      Switch: 65M