X360 in Croatia is far far less popular than PS3, but out of those that are sold, about 95% are modded.
Heck, even stores offer modification as a service, you purchase it, pay taxes to the government, everything...
http://sophoslab.hr/modifikacije-i-servis/86/x360-ixtreme-firmware-lt-30-ltu-12-update-firmware-a/5340.html
http://sophoslab.hr/modifikacije-i-servis/86.html
(Sorry, it's in Croatian).
It is commonly used theory that Microsoft purposely made modifications simple, to gain foothold in countries in which they wouldn't be sold much or at all. They know that their main markets for software sales are USA and UK, and in those countries piracy laws and enforcement are very strict, so they don't have to worry about mass modification.
In Eastern Europe, where Playstation is synonimous with gaming console, they know they would never sell games... so they just try to shift consoles and make a quick buck. They offer no support, no customer service, no localized Live service, no retail games unless imported by individuals.
Heck, all X360s in Croatia have a UK power brick with a free outlet adapter, so basically every XBox sold in Croatia is tallied in the UK sales report...