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The xbox 360's main problem in Japan has to do with hardware poor reliability and perceived low quality (e.g. noise levels, etc).

It's not about boycotting Microsoft products. Most computers in Japan run on Microsoft Windows (including Sony desktops and laptops); there are more games released on the PC platform than on the Wii, PS3 and x360 combined.

Microsoft just needs to sort out the 360's hardware woes and continue wooing Japanese gamers, because software-wise they seem to be doing a fairly good job in terms of the catalogue..but sales are wanting.