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Ajax said:
Without Japan the Xbox actually kicked the GameCube's ass with 25 versus 18 mill!! For an industry entry against a name like Nintendo, and with the PlayStation so strong, they actually didn't do bad at all. The 360 is doing better than the Xbox, and still without Japan. That's quite a handicap if you think about it. If the PS3 won't take off in Japan in the future, it might not out sell the 360 significantly during this generation.

But the main problem is that Japan is a big part of the gaming industry, that is why they hired Hironobu Sakaguchi to help increase sales in Japan, and he has done a good job for how terrible the market it is there.