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Hmmm... if they plan to sell for a while, they had better get a slimline 360 out.
Xbox 360 Slimline could revive the 360 in japan. Japanese think it's too bulky and the hardware stigma is firmly attached. A redisgn might shake this. Just show ads showing the 360 Slim being all cute, and say straight "the 360 Slimline is extremely reliable" or something like that to show that they won't get burned if they buy it. Bundle it with a few JRPGS and Microsft should be golden...