360 does well elsewhere in the Japan 'region' such as Hong Kong and here in Taiwan. I used to live in Japan before I moved here, and I think Kinect has an uphill battle in Japan because very few Japanese have a living room big enough to use Kinect in. Even here in Taiwan, my apartment is about three times the size of the average Japanese apartment yet I still don't enough space for Kinect, I'd have to rearrange my whole living room. I find Japanese aren't as interested in playing games online, so XBox Live isn't as big a selling feature. I think Sony has lost a lot of its reputation in Japan, so if MS releases a new console there, they may have a fighting chance.