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PS3 isn't dead in Japan. Its normal average is 40,000 units a week. Its been pretty low the past 2 weeks, but way too early to determine its future in its home country. It is still the most expensive console and Japan's gaming market is in a strange place right now. It seems to be handhelds or nothing. The Wii is having nice sales because of Smash and Wii fit, but I expect it to die down. Remember when the PS3 was beating the Wii in November? No one seems to mention that. :(

http://www.next-gen.biz/index.php?option=com_content&task=view&id=8166&Itemid=2

Don't worry about it so much. PS3 will do fine in Japan, it only looks bad now because its doing do well in the UK and the US right now. PS3's training wheels are almost off.