Yeah, the PS3 will have the long term advantage, like the PSP it will never outdo its Nintendo competitor but I don't see it dissapearing in the future.

if FF13 has tons of videos like FFX and FFX2 then why can tthe wii do it? anyone look at how georgous mx vs atv is on the wii? cmon that is what im saying the ps3 is known now as hte copier of nintendo and why pay that price when you can get a wii for cheaper and have a better gaming expeirience. this is why the ps3 isnt doing very well. and i doubt those games doin much for the ps3 in teh long run.

I think there are a few key elements behind PS3

1) I just don't think that Japan is rushing to notion of HD gaming nor is swayed by 'power' specs

2) PS3 just doesn't have enough titles being released regularly

3) PS2 is still getting far more support for local games (look at that list) but its already at saturation point

So I think PS3 can turnaround in Japan (PSP essentially proves it) but its not got what it would take right now - i.e. titles/regularity to warrant a steady, sustained growth in average weekly sales, nor is market quite embracing it for HD gaming / BR combo.

Of course with BR winning format war and BR adoption seeming to pick up pace in Japan the second issue might solve itself (as I think it did to an extent with PSP) but the first issue will need either luck or a concerted effort on Sony's part. If I was them I wouldn't leave it to luck...

I think there is some merit to the argument which states:

Japanese pick a home console and stick with it.

Other than that, games.

The Japanese prefer the cheaper Nintendo Wii. PS3 is still really expensive and does not appeal enough to the average Japanese gamer. Playstation brand has become a lot more Western orientated appealing more to the American and European markets

Some insightful replies, I agree size, price and games appealing to the Japanese market are the main driving factors.

All will be addressed in due time though, Sony stated that they are going to release a cheaper slimline PS3 at some point and it has the most yet unreleased anticipated games line-up.

The PS2 had the most important Japanese RPG games Final Fantasy and Dragon Quest available within the first year of global PS2 release. It's just a matter of time for the PS3 to really breakthrough in Japan.

ps3 is more expensive than the Wii but not really that expensive over there. It's price is much lower than in the US and clost to 1/4 of what it is in Europe. You can't say japan is a poor country so that's why it is cheaper.
It is not the price there that makes it undesirable, it's the games. It will be interesting to see how many special consoles with mgs4 sony will produce....

The tides have turned. Japan sees Nintendo as their primary games product again after a decade.

Look at the number of games for the PS3 targeted at japanese gamers and the answer should be clear. Not all is lost though contrary to the 360 they have an "existent" userbase in Japan and a couple of big titles in the pipeline.

NOT enough Japan oriented games.
Almost NO JRPG. Are you people insane? A console without good jrpg won`t sell in Japan.
But everything will be FINE by the end of this year.
After MGS4, RE5, WKS, ES, LR, FFXIII, GT5, SO4, KH3 and other Japan oriented games PS3 will gain, just like PSP now gaining after MH2G release.

You are worrying, like 1 year ago, when some people were thinking that PS3 is doomed, LOL. =)

It will take some time, BUT it will gain.
You don`t believe me? Then look at psOne sales in Japan. =)
http://vgchartz.com/hwlaunch.php?cons1=PS&reg1=Japan&cons2=PS3&reg2=Japan&cons3=PS3&reg3=------&weeks=120
PS3 is the ONLY HD console in Japan, after PS3 games will show their glory, PS3 sales will skyrocket. =]