Same reason Sony doesn't discontinue the PSP in North America

Because except selling hardware for a profit it is still doing ok in software. Japan was (not sure it if it still now) where they spend most MS points for every user.

Even last week Japan got two exclusive XBLA games Virtua striker and virtual on and the Japanese are buying them.

They more than tripled their Japanese install base compared with the original Xbox, and there's still a lot of potential for growth with a new system if they handle it correctly.

Because it would hurt the Xbox brand image. Plus they're selling the hardware for a profit.

And the 360 gets some niche titles like shmups or Onechanbara.

*facepalm*

Because removing hw and software sales, no matter how small the percentage is a dumb idea.

The growth they've shown was mostly due to the JRPGs the 360 got early in its life. I expect the nextbox to do worse than 360 because Microsofts focus won't be on capturing the Japanese market, they tried with 360 but it didn't work.

No matter how small it is every week, Microsoft are still selling a couple of thousand a week.