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Well, there's no reason why their next console has to have X-box in the name. Nintendo simply call their console the "Wii" (incidentally a name specifically chosen for it's worldwide appeal). It doesn't have Nintendo or anything linking it to previous consoles in the name.

It's too late to completely fix this gen, but they have an opportunity to try to fix some of these problems when they eventually shrink the components and can bring out a 360 slim. Then they could introduce a design that appeals to a worldwide audiance, or a separate design for the Japanese market. They can't completely change the name, but they could drop the "Xbox" and simply call it the "360 Slim" or something similar in Japan.