There are many reasons. There are quality issues, there are cultural issues, there are game library issues.

(1) Quality issues: The original Xbox was regarded as low quality -- it scratched disks, it was very large (seen as technologically inferior), etc. The 360 has really expanded on the low quality sentiment. While the 360 has been designed better aesthetically, it still has DVD drive quality issues and other hardware quality issues.

It's worth noting that Japan's population overall is very dense and they tend to have smaller living spaces than the average American. So small devices, including smaller and cooler electronics, are valued more than in the US. The Wii, DS-lite, PSP and PS2-lite really cater to Japanese in that respect.

(2) Cultural issues: it is somewhat true that the Japanese are relatively loyal to their brands. This includes a feeling that they make superior quality electronics. While is tends to be true, much of the world considers American electronics to be inferior as American electronics companies usually compete primarily on price, not on quality (there are exceptions, of course).

(3) The Japanese gamer seems much less interested in shooters and sports games, except baseball, than American gamers. These are the two strongest areas of the Xbox 360's library rendering the 360's greatest strength in the US a weakness in Japan.

While these issues are related, I think the combination thereof is really what tends to turn the country off from Microsoft. However, if you look at the PS3 vs the Xbox 360, you'll see that the PS3 isn't even doing all that much better than the Xbox 360.

Take the PS3's current sales as a baseline. Subtract the value of the Playstation brand name. Subtract the value of the Sony brand name. Add the cost of the Xbox/360 quality perception. I think that explains the performance of the Xbox 360 fairly well.

The first Xbox controller wasn't available in Japan; it launched there with the Controller S. Before release, Microsoft's Japanese focus testing showed complaints with the controller, so the Controller S was specifically designed for the Japanese market. In fact, the Controller S wasn't available outside Japan for quite some time; people in the US used to import them. Microsoft saw the demand and eventually released the Controller S in the US. When it became apparent the majority of US customers preferred the Controller S to the original controller, it replaced the original as the standard controller.

Microsoft really did try with the original Xbox. They formed a Japanese game studio, with Japanese employees, to create games specifically designed for the Japanese market. The tried hard to court the Japanese third parties. They completely failed in every one of their efforts, but they did try.

it looks ordinary, thats why.

wii looks nice and cute coz of its size and design. ps3 looks elegant and shiny. xbox360 looks dull.

plus dvd tray sucks.

its an american product nuff said
i do think it will sell 1.3 million in japan ltd

I think it's because the Japanese have a very different gaming culture to any other gaming nation with very few people actually being considered "hardcore".

Basically the Wii fits the Japanese audience perfectly. Apparently prime-time tv in Japan has taken a huge blow because too many families are playing their Wii's!

Last gen ps2 had alot of games for casuals and this gen the Wii has them.

The only time the PS3 and 360 will get a boost in Japan is when a game like Tales of Vesperia or Metal Gears Solid 4 is released.

(yeah i am putting the ps3 is the same boat as the 360)

Um dude...its an american made product who last gen didn't have any JRPG's to gather a japanese fanbase. Today it's a different story. Sony hasn't even really tapped Japan yet. They have only responded notably to the Wii, DS and PSP.

you couldnt have picked a worser time to ask this question though

The Japanese are highly Xenophobic when it comes to products, people, etc.  This is why the Xbox 360 has a hard time selling in Japan.  It doesn have to do with games, or how it is marketed, the system is not made by a Japanese company and is therefore foreign.

What are you guys even talking about? The system didn´t see many big titles yet. There are months without a single releases the Japanese people care about.

In fact we´re seeing a great boost already because there are multiple games announced for this year.

I doubt the system is going to start selling like crazy but we should see a rather big increase in hardware numbers... Actually, we´re seeing it already.

Foreign brands do well in Japan: The iPod is American, Windows is American, Nokia is from Finland, Philips is from Netherlands, even Dell computers do well there... And i'm talking about electronics, don't make me bring up fast food, clothing, etc...

The reason the Xbox is not a seller in Japan is more of a brand and marketing problem... They're trying to correct that with the massive JRPGs coming, but it's gonna take more than that...

The PS3 is doing regular because of the games mostly...