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Let's see...
Lack of JRPGs and other types of games that a lot of Japanese players enjoy.
High price
That's pretty much it. Xbox 360 didn't do better percentage-wise in the market than the Xbox did. But the 360 had a way higher amount sold worldwide than the original Xbox, and was able to sell over a million in Japan.
The Xbox One really never had a chance in Japan. The Xbox Series X will be lucky to sell 0.5 million lifetime units in Japan.



Lifetime Sales Predictions 

Switch: 161 million (was 73 million, then 96 million, then 113 million, then 125 million, then 144 million, then 151 million, then 156 million)

PS5: 122 million (was 105 million, then 115 million) Xbox Series X/S: 38 million (was 60 million, then 67 million, then 57 million. then 48 million. then 40 million)

Switch 2: 120 million (was 116 million)

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima