With all due respect, I understand that that the console market in Japan has been under pressure, but I just don't understand how they have only sold 40k since launch. What has gone wrong and how can it be corrected?  There were comments about how Japanese studios were making a mistake by not supporting the system, but Microsoft needs to make moves to make it feasible for developers to spend money on development.   At 800k, the PS4 is doing okay but not amazing.  Still, it will sell, games are coming and It will clear 1 million the first year.  Should Microsft just pull out of Japan?

Simple, Japanese people buy Japanese brands' products.

This has been disproven.  American products have found success in Japan.  If you were in the shoes of Phil Spencer, what would you do to correct the course in Japan?

Japan hate of xbox and no games for Japanese gamers

The XBone selling 40k in Japan is a lot more than I expected, specially without popular titles in Japan. And when the heavy hitters JRPG arrive (Persona, Dragon Quest HD, FF, Xenoblade, Youkai Watch, Xenogears...) that number won't grow for a long time. The only title Microsoft could use to attract people to their console is Minecraft, and its EVERYWHERE ELSE (minus Nintendo :( systems).

Well, look at the sales of the 3DS, Vita, PS4 and WiiU then, and compare them to the sales of the Xbox 360 and Xbox One.

Sadly, I don't think there's much to be done. The Japanese gaming community isn't interested in the Xbox One. The system is aimed at an Occidental audience (sports game, shooters, etc...). Unless they invest a ton of money in JRPGs, I don't see the Xbox One doing any better in the years to come in Japan. Especially when you see the Japanese games in the work on WiiU and PS4.

I love people saying it is doing okay, Just because it is closely beating the Wii U doesn't make it good. Infact everything but the 3DS is doing badly and relatively to the DS. 3DS is also doing badly. 

Would you elaborate on what these reasonable measures are?

As bad as it might be, they can't just pull out of Japan because it might be worse for them if they did.

Think about it for a second, with no presence in Japan, it would be less likely Japanese studios would make games for the XB1. And if they did, MS would constantly have to pay them to make the games for their system for the west only whereas the competitors likely wouldn't have that problem because they already have a presence in Japan. So imagine them having to constantly pay Square Enix, Namco Bandai, Sega, Konami, Capcom, etc for literally EVERY game to come west just because they don't have a presence in Japan. That would become a problem in a hurry.

Plus, there's also the face value. If they leave Japan, it would be saying to the world "we failed"

Its not that surprising considering the xbox's History with Japan in terms of sales