There's a shock! 360? Not doing well in Japan!? Unbelievable...
Anyhow, until a Dragon Quest game (or, I suppose, Monster Hunter, now) tops 10m in the West, Americans have no right to criticize Japanese preference in games, :P.

Microsft like Japan,so they will never give up

also,if something like this
http://translate.google.com/translate?js=n&prev=_t&hl=zh-TW&ie=UTF-8&layout=2&eotf=1&sl=auto&tl=en&u=http%3A%2F%2Fwww.kotaku.jp%2F2011%2F08%2Famazon_ranking_top20.html
keep selling good,i don't think they will leave Japanese market

No, no, they dislike western gaming in general, its nothing exclusive to Xbox.PS3 exclusives such as resistance, Killzone Uncharted and LBP also faled in Japan. In fact, i know only one wester franchise that has sold over illion in Japan...Crash Bandicoot

Japanese gamers simply have completey different taste in games compared to western gamers, which is why they tend to not buy western software. I wouldnt call it "negative bias".

With regards to the hardware, nintendo and sony are japanese companies and are well established brands, why wouldnt they buy hardware from their own country? Again, its not negative bias as they have valid reasons for supporting japanese brands.

Same thing goes for the American and European market. Japanese-centric games don't do as well here as overseas. It has nothing to do with bias, moreso with culture.

One thing is for sure, Microsoft has been a lot more impressing than SCEJ this gen in Japan.

Well they were trying... They should forget about Japan and push even more in Europe and rising markets. Looks like japanese people just love their own brands.

^ Thank you for saying it lol

What's wrong with the last sentence?

XBL/PSN/Steam are services that span multiple platforms, and they will be crucial in locking users into the next Microsoft and Sony consoles (or keeping them on PC).

Xbox Live is the key reason the 360 is as successful as it is in the US and UK.  Almost everyone I know owns a 360, and it's primarily because all their friends game on 360.  If you want to get some multiplayer action going on, Live is where it's at.  I know people that pay for Live solely for this reason.   Achievements and games bought via XBLA will ensure that all the people that jumped on the XBL bandwagon will stick with Microsoft going into the next generation, barring any drastic changes in third party support.

Sony taking so long to cut price and get a decent online offering available in the US is arguably the biggest misstep they made this generation, because it has created a situation that will be VERY challenging to overcome for a generation or more.

The same applies to PSN and Steam, both of which are taking over mainland Europe.  It will be a challenge for Microsoft to pry gamers away from other services in the area.

Microsoft lead the pack in getting online gaming into the average gamer's home in the US/UK, and that is hands down their greatest achievement in entering the console market.  It was a brilliant move.  However, their inefficiency in fleshing out the service in non-English speaking territories (save Japan) is probably their greatest misstep.

Edit:

Or did you think I meant they'd have a hard time battling PSN/Steam in general?  I was referring specifically to the European market (sans UK) with that comment.  ^^

That would make sense exceptt thatthe beginning the X360 was the console with the biggest Japanese games.  Project Sylpheed, Dead Rising, FFXI, Ace Combat, Katamari, Blue Dragon, eternal Sonata, Enchanted Arms, Lost Odyssey,  Lost Planet etc...