PS3 will definitely sell better in the "Others" region than Japan this holiday season; it's a bigger market and the sales have clearly trended better there. I agree with mrstickball's analysis on this issue (PS3 already cheapest in Japan and not selling, few compelling software titles to push systems, etc.) and won't bother to repeat it further.
I think that the 400k number for December is also on the high side. For whatever reason, the Japanese have decided to reject the PS3 - I find it hard to believe that sales will go that high. PS3 is tracking well below Gamecube levels over there currently, and Gamecube was well short of that number in its second December. Maybe a December release for Metal Gear Solid could push numbers into that range, maybe not. I think somewhere in the ~300k range for the PS3 is a lot more likely for Japan this holiday season, and the Europe/Others region will easily beat that.
ssj12 said: The PS3 has a huge chance and great reason to sell a ton this holiday season in Japan.
1. $50 - $100 price drop
2. Eye of Judgment
But the PS3 is already much cheaper in Japan than anywhere else in the world; it's selling for around $450 if I understand correctly. And Sony is still having trouble breaking 10k per week right now. Even if Sony could afford to cut the price further, I'm skeptical over how many additional units would sell.
As far as Eye of Judgement, I guess we'll have to see. It looks very cool in theory, but I'll have to see a finished product before I can deliver an accurate assessment.