Xbox boss Phil Spencer. Speaking with GameSpot at the Game Developers Conference last week, Spencer, who heads up Microsoft Studios, said he's optimistic about console gaming in Japan.

"Well, I don't think the number of gamers in Japan has gone down. We obviously haven't launched [the Xbox One in Japan] yet. I'll say we're doing more development in Japan right now than we've probably done in quite a while," Spencer said. "But the development community, I actually feel like there's a lot of great talent there for console games."

"I don't believe that console gaming is dead in Japan. I'm not Japanese, so I'm not the best person to talk about why I believe that. I don't have any kind of natural connection to it. But knowing my friends there and the things that they're interested in, and the games that are built there, I think we've got to find some genres of games that re-emerge," he added.

Overall, Spencer stressed that the Japanese market is "critical" and even teased that Microsoft has first-party games in development in the region.

"We remain committed to the Japanese market," Spencer said. "And I know our launch is a little further out, but we're going to be at Tokyo Game Show again, we've got first-party games being developed in Japan, and just as a creative entity itself, the Japanese development community, it's critical for us in the industry that we continue to invest there and see great games come out."

http://www.gamespot.com/articles/console-gaming-not-dead-in-japan-microsoft-says/1100-6418629/

Of course its not dead in Japan... its just on other consoles except xbox

I will be very curious how the approach the Japanese market (particularly any first party Japanese developed titles) and what their expectations are for the X1 there.

Of course it is not dead. Although since you are selling 500 consoles each week there your brand might be.

MS is not the one who needs to be talking about the console market in Japan. The One has zero chance there.

Not dead yet, but if mobile gaming keeps growing at the rate that it is I doubt it's got more than a generation or two before it is.

It's not dead. It's just on its deathbed.

Look at the bright side, guys! The Xbox One's lifetime sales in Japan are probably going to be better than Virtual Boy's lifetime sales in Japan!

Its alive like the Zune Phil.

According to vgchartz numbers, Xbox has sold 1.38 million games in Japan and the Xbox 360 has sold 12.59 million. That's an 812% increase. So it's might have a bit more potential than some people believe here.