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Microsoft is definately still trying in Japan...

Ninja Gaiden II probably helps fortunes right now...

And Tales of Vesperia, Star Ocean timed exclusivity, Inifinite Undiscovery, and Last Remnant timed exclusivity help. But, let's face the facts. 360 is not winning in Japan and will never win Japan...

But, 360 is doing much better then original XBox Japan and the next XBox will probably improve their standing again... Microsoft is executing a long term strategy and it is showing world wide... Back when the PS3 was first released everyone was predicting a 2007 end to 360... Here we are in mid-2008 and 360 is still comfortably ahead of PS3 in worldwide units sold to date for probably at least this year.

With the way Sony dominated last generation I think 360 is doing just fine and Microsoft has to be happy that they are still in the race at this point. 3rd Party support is very strong and any 360 owner will tell you they are more then happy with the amount and quality of content they have seen to date. There are very few third party games not coming to 360.

If Microsoft did not have the RRoD issue, Sony would be in a lot of trouble right now. That is the biggest reason anybody I talk to cites for not buying a 360 over PS3...