kowenicki said:
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It sold well with the hardcore.
It's a hard market for a product in which you can import from America for cheaper, but is more expensive than the other consoles (on average) and really only has jrpgs and western games. Not forgetting that Japanese tend to prefer systems where multipurpose is king and 360 just doesn't have a lot of that. It's also missing just a lot of basic features that Japanese are already used to. No integrated wireless for years, battery operated large controllers, no web browsing.
Japanese play more than just jrpgs, and do more on their system than just play games. There's no reason to buy an already expensive system in a store when virtually everything does more, and costs less. 360 is even considered a hardcore gamer's console in Japan.













