Obviously yes. I don't know why people keep asking this ridiculous question.

There are many more countries where the 360 sells less units. Or many regions where Wii and PS3 sell less than 1.6m units and do you ask if Sony or Nintendo will stop supporting those ?

I am sure MS will do what is best from a business prospective.

It's a lot more than just comparing Japan to New Zealand.

Look at the money spent on marketing in these countries. Take into account that an English Language game works as well in N.Zealand as it does in the US so doesn't cost them any extra as it would in Japan.

The facts are that MS spent a lot of wonga in Japan resulting in crappy sales. How much did they spend on marketing in NZ? A fraction.

The Xbox brand is actually much stronger in the other Asian countries, I live in South Korea and Xbox is stronger than Playstation here.

Yes. The questions is, why wouldn't they?

They should. X360 sold more than the first Xbox.

They would hope NextBox > X360.

Yes they will if it makes them money. Unfortunately the Japanese market as a whole will still be unwilling to accept a device designed and created out of their country. M$ never really had a chance.

Why thank you for mentioning our humble little nation. However your perceptions of NZ and how xbox supports this are flawed. NZ isnt a big market but AUSTRALIA is which of course MS does want to do well in. And since NZ is right next door it is very easy for MS (and other console makers) to ship their products across to us for very little cost. It would be an entirely different situation if NZ were on their lonesome with no other developed country nearby (that would be likely to buy consoles). 

Well, thank you for mentioning MY humble little nation.

It might interest you to note that almost all good shipped to Australia are shipped via Japan, and that almost all goods shipped to America from Asia are shipped via Japan.

http://qed.princeton.edu/images/d/d2/World_Transportation_Patterns.jpg

Hell, Nintendo sold 4.77 million copies of the Gamecube in the entire of the world excluding the Americas and Japan (Europea, Middle East, Africa, Asia, Aus, NZ). You can bet that less than 1.6 million of them went to Aus/NZ. Why did the Wii ship to Australia?

The 720 will ship to Japan, not doing so would be idiotic.

I had thought a number of console makersand game publishers actually manufactured games and consoles in Aus? Im pretty sure thats the case in some instances. 

Still you may be right. I find it hard to believe they will try to win Japan asd hard as they tried this gen based on their lack of success. Though of course they made enough profit this gen to try this if they wanted to.