Parokki on 09 April 2008
The PS3 is doing so bad in Japan because it got caught up in the "who can be the most like a PC" race with the 360, and forgot Japan doesn't care about online play or shooters.
There's a bunch of other stuff, but it really just comes down to forgetting what made the previous console so succesful, and catering too much to Europe and the US.
