Because the japanese people like reliable hardware. The sh--box with its 43+% defect rate is not worth the money. Why buy something that is sure to break when you can buy a DS, PSP, Wii or PS3.

Yeah, that's why there are no McDonalds or Stabucks in Japan, and nobody buys iPods. 

Read the entire thread before next time, seriously. -_-

Japan is generally pretty xenophobic. I'm not saying each individual is, but the overall spirit of the country is not foreigner friendly. I've met tons and tons of people when I was over there that I thought were wonderful people, but the culture itself is not when it comes to foreigners.

Anyone that's ever been to Japan has seen the words "Japanese Only." Anyway, this should come as no controversy to anyone who does even 5 minute google search.

An American console (can you even name any successful American games on 2 hands?), no matter how good, will never succeed in Japan.

Wildly different tastes don't help, either.

Explain the success of the Apple (American Company) iPod is so popular over there?

I have been living in Japan for about 9 months and I know the culture pretty well.  The article Itsamii posted counters many of the statements in this thread, but here is my own take.

> They don't like American companies / patriotism

  American companies are huge over here. The Japanese culture has a huge fascination with America. I think the brand power of most American companies is even stronger in Japan.  As mentioned in the article the iPod sells very well here.

 > The don't like Microsoft

 Japan is one of Microsoft Windows strongest markets.  There is a lot of negativety towards Microsoft (BSOD, Evil company) in the western world which to a large degree doesn't exist in Japan.

 > The Japanese are brand Elitist.  They buy things to show off.

Whilst it is true the Japanese do favor brands more than other countries, it's not like everyone is like this. Like my own country Australia, there is a percentage of people who wear clothes because of the brand and are shallow. This percentage is greater in Japan, but it is still a small subset of society.  It is mostly girls and generally these people don't buy video games anyway.

It is true that people are more focused on appearance than most other countries.  However, this is not about brand, it is just about being appealing/cool to others.  I think it ties into a general cultural sensitivity to what other people think.  It is also partly due to the Japanese focus on doing your best, whether its what you wear or your job or anything. However, this doesn't impact video games sales.  People are not self-conscious to the degree that they want their living rooms to only show the most publically accepted brands.  So basically I don't think this relates at all.

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So why then?

I think the reasons are very simple and equally applicable to other markets.

The Xbox is branded at the American market. It is supposed to appear powerful/masculine/ferocious.  There is the whole theme of its raw green radioactive power glowing from within.  The Japanese culture is not very masculine at all.  The celebrities are easily mistakable for girls with their very thin frames, styled hair and luscious lips.  Further more, as such a technological society, they are further along the style curve than America.  I would say they have grown out of the alienware style powerful looking hardware, i they ever were attracted to it.

They prefer simple and aesthetic styles with the feeling of refinement.  I mean not even refinement, the feeling of perfection.  Just look at the wii or the DS and you can see what they go for.

The Xbox original was even further marketed towards American tastes and did not impress them.  So you have to realise that the Xbox 360 is in a way starting from scratch (or maybe even behind scratch) again this generation.

And of course the games, the Japanese aren't big on FPS games which is the hallmark of the 360.

Lastly, it was always going to be an uphill battle. The Sony and Nintendo brands are very rooted in Japan, much less so than America. 

So basically it is simply the brand, the offering and the market. It really doesn't have anything to do with an anti-american bias.

japanese don't like microsoft and 1st person shooters...
they don't like war games (COD, halo, bioshock, ME...)

they don't like all these big titles....

Maybe because the Xbox 360 is an American console.. and the Japanese hold a grudge at them?

 Do they really call it the sh** box? Thats hilarious. Seriously.

 yea exactly what I said haha.  

Japanese love Hollywood movies, european soccer and american baseball. So they're not xenophobic at all...