To be honest this is how I see it aswell.

In japan the 360 is creating confusion so people are waiting it out till one of the 2 HD platforms has been decided.

Just my point of view.

And that's pretty much it.

 Japanese devs do care about their home market, but EU and NA are much more lucrative and still growing. Games which are very 'Japanese' will come to the Wii, while titles with a more international appeal will go to HD consoles and maybe Wii. HD consoles will probably miss out on things like JRPGs and anime tie-ins in the future.

There is no confusion because there pretty much was no HD war here like there was in other places. It's pretty much just been Blu-ray.

To the OP: You need to look at the Xbox 1 sales in Japan also. They were also insignificant, although the 360 has managed to surpass the Xbox 1 sales in Japan, it's not by a significant margin.

The PS3 hurt itself by having hardly any games to appeal to the Japanese audience. Most of the "big" Sony games thus far have been geared more towards Western audiences, e.g. Uncharted, R+C, COD4, GTAIV, etc.

Sony pretty much ignored the Japanese market, making a Western-oriented console. Huge size, Western oriented games, etc....

They have no one to blame but themselves for PS3's failure in Japan. The 360 wasn't expected to be a factor, and it isn't. No surprise nor harm done.

I'm only entertaining the theory because of your avatar.

Your wrong.

No because

1) XBOX is a non-factor there
2) All the good JRPG are actually on XBOX360 exclusively

FFXIII, GT5, WKC, and MGS4 to a lesser extent will help the PS3s sales in Japan

no dude, it's the other way around, the 360's failure is the only hope Sony has..

Actually, he does have a point.
IF xbox had been really succesful in Japan, maybe PS3 would have enjoyed a higher status, and even benefited from multiplatform games. Maybe.
But he does have a point.