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Farsala said:
That is the major weakness of Nintendo and MS. MS can't appeal to japanese audiences with its Xbox consoles, japanese 3rd parties choose Nintendo and Sony. Nintendo can't appeal to western audiences, western 3rd parties choose Sony and Microsoft.

Sony wins both, this gen they have not been aggressive so far. Last gen they messed up hard and they went aggressive and managed a 30% share.

Actually, I think (and any residents of Japan, please feel free to correct me), MS had a chance in Japan, but blew it in the 360 years by claiming X really popular japanese title was exclusive, and then said title releasing on the PS3 at some point later w/ added polish/content.  I seem to recall that really bothering some folks there and it lost Microsoft a great deal of respect/cred in that region.

Plus, Japan's been less home console-centric for quite some time now, so that's not helping matters any, either.