True. That's how I see the 360. I know it's wrong, but, that's how it's marketed. Up until Kinect, that is. (NOT A BAD THING MODS!)

All these are very good points. I have now updated the OP with your suggestions. Keep them coming!

I remember a video on X-Play where Adam Sessler went to Japan before the launch of the Xbox 360.  It was a comical piece but it rang true.  One guy said he would by an Xbox 360 if it was called Playstation.  He asked another guy, "Would you consider buying an Xbox 360?"  The guy nodded his head and said, "Yes" in Japanese.  The subtitle read, "No."

It was already common knowledge back in 2005 that the Xbox brand had no chance in Japan.  In all honesty, it's done better than I ever expected over there.  The reason behind it?  If I know, I'd sell the info to Microsoft for millions of dollars.  It just is what it is.  Maybe in another decade, the Japanese will be more open to a Microsoft gaming system--but by then I hope there's just one universal gaming platform.

I don't buy the xenophobic thing either like Chibi. Other Western products have done fine there.

Like others said image is the issue and a pretty much non event first console that the Xbox 360 had come off.

If we compare game libraries, lets be honest PS360 libraries are 95% similar and which exclusives does PS3 really have now that set it apart from 360? GOW3, Heavy Rain, MGS4, Uncharted 2, LBP. Now only one of them is a hits in Japan speaking in relative terms, the others are very much geared towards the West.

Then you have poor sales of Tales OF Vesperia and Star Ocean 4 on xbox 360 in Japan (both were exclusive to 360 in Japan at first), the audience literally just didn't shift to xbox 360 and you saw a severe decline insales which can't be explained through the rise of the used market as the decline was sharp. Gamers saw it fit to miss out on those franchises rather than buy a 360.

So this is definetely an issue of image, not games library or xenophobia.

Its like the kiddy image nintendo had to fight with on the Gamecube due that image developing from the N64 years. Or you can compare it to the general image Nintendo has with 3rd parties since the N64 era.

There are so many reasons I'm sure xenophobia plays a part but no more then it gives 360 an advantage in USA, the fact that it's not as much cheaper there as it is in NA is another thing, xbl service is crappy in japan and MS charges for it theres also the failrate and the lack of wifi for the original 360, the lack of exclusives that they care about is another huge one the advertising for 360 isn't in japan either I'm sure I'm missing a few but I believe if MS addressed all the problems aside from the xenophobia at the start of the gen it would have done much better, but they didn't address any of them and their efforts in japan always seemed half ass

1. software

2. Console price

3. and... software

Wii and PS3 gets plenty of games that appeal to Japan's market. 360 gets few.

Dreamcast also had quite a few games that appealed to the Japanese market. The Dreamcast was also considerably cheaper. It went down to $99 pretty fast in the US. I assume it did the same in Japan.

The Japanese are far smarter than the poor westerners who buy 360's. 

The japenese have very different eyes than us (literally) so they can see the bullshit microsoft spews at us and we're too stupid to realise it while they're LOLing all over their country saying how stupid we are.

Add a smiley if you were joking before you get banned gurglesletch.

The people saying that the 360 has no exclusive software to appeal to the Japanese... do your research, and do it deeply. The 360 gets a huge load of exclusives in Japan, mostly SHMUPS, dating sims, and fighters (latest notable upcoming fighter would be... Phantom Breaker I think). The 360 is EASILY the definitive otaku/hardcore console among the three... and that is the reason that this argument is incorrect. It has the best selection for the hardcore gamer, but if we're talking mass appeal and mass sales, people would rather take the PS3/Wii over it... the reason being extreme and strong-forged brand strength and appeal... Microsoft failed to establish that with the original Xbox, and screwed it up further with the whole RROD deal, it's hard to dig it up now, even with good hardware and Kinect.

IMO, a Japanese 360 is THE 360 to get. The best western titles are already there, and there's a huge array of Japanese games that you can get for it. HUGE.

Xenophobia? Don't make me laugh. Chibi and darth already disproved that.

Nothing personal, but next time, before you make another of those threads, check your facts and arguments.

prbably how microsoft handled the first xbox in japan and the fact thats its harder in japan than america to break in a foreign product.