As said by some above: (And this really goes for any console)

Yes - If they want to take first place in any generation they will need Japan. They may not need to win Japan, but they will need to have a very strong showing. This means that they will also have to win the other two markets.

No - If their main concern is to beat Sony, (and I believe it is) they don't have to do well in Japan. But not doing well in Japan makes it that much harder for them to stay ahead in the World wide race. Not impossible, but very hard.

I would think that sales in any market North American or otherwise, would be a large component in "beating" Sony. Maybe I am wrong in this but if Sony sells 30 million PS3s in Japan and Microsoft sells 200K, doesn't that create a large gap? A sale is a sale, and if a large segment of the console buying public is basicly refusing to buy your product, then I think you have a problem. Since profits don't seem to be an issue for Microsofts 360, since they never had any, I guess you could assume that sale don't matter either. The 360 has only sold 10 million in a little under 2 years. That's pretty bad, especially considering they have never made a dime. This is just a sneaking suspicion but I think Bill Gates is in this to make money. You bet he wants that Japanese Yen. He will continue to try and get it.

For MS to "win" the console war they definately need JPN, but MS plan isnt to be No.1 its to beat Sony and they dont need JPN for that they just need NA and EU but with EU looking to prefer PS3 over X360 it is going to be hard for MS to beat Sony with only 1-2/3 markets.Sony is selling mediocre in all markets.MS is selling poorly in JPN,good in NA and mediocre in EU.The end of this gen 2nd place is going to be close between X360 and PS3 but i think the PS3 will just clip it.

Microsoft's billions of dollars of red ink probably doesn't have as much to do with hardware sales. It's also caused by the fact that they spend more on advertising and on buying development studios and paying for exclusive titles and content. They probably paid a good amount for Blue Dragon and Eternal Sonata, but given their poor sales, they probably didn't get a decent return on their investment. Same goes for their purchase of Rare.

Does the 360 need Japan? Hell yes. It's a very large market where over 25 million consoles were sold last gen. The 360 certainly isn't going to have a shot at #1 doing decently in only one territory. The PS3 is still outselling the 360 in Japan, and that's in spite of Blue Dragon and Eternal Sonata.

MS has sold 10 million 360's in two years, 2/3 of which are in N. America. It could have a hell of a lot more than this if not for its poor performance in Japan(and Europe, but that's another thread), and it would have had a better chance of protecting its lead instead of being on the verge of falling behing the Wii. The 360 has(roughly) the same lead over the PS3 in N. America that it did a year ago. The PS3 outsold it in N. America in July, and it looks like their sales won't be that far apart for August. If they remain virtually even for the rest of the gen and the PS3 outsells it Europe(which it probably will as the PS3 is outselling the 360 there with no price cut) and sells 5-10 million in Europe, then the 360 is in last place.

As the gamers, we probably will be content with the 360's lifespan, regardless of wether it ends up in 1st, 2nd or 3rd place this generation. If it never sells a single new hardware unit in Japan after today its market in NA and OTHER will probably be fine.

Microsoft however, probably will always have its wishful eyes set on Japan and likely will continue to pursue its market quite aggresively (with deep pockets).

Im sure they need Japan to achieve their overall goals. 

Only if they care about being #1 in userbase. It wont be possible for them to keep #1 this gen without a force in Japan. Wii has been able to overtake it in 8 months primarily due to selling millions in Japan.

I would have to say without japan it is entirely possible for them to end up number 2 unless the ps3 sell go stratospheric. they would have to triple what they are doing in japan and the 360 would have to make no gains there. I am quite confident that the 360 can hold its place in europe for at least another year. so really the question is can the 360 stay ahead of the ps3 in NA sales. considering the last npd numbers put the 360 ahead even with bad press and the ps3 price cut, then it is entirely possible. i doubt it will be number 1, but a better number 2 place, is possible, say 35% of the market at the end. considering xbox is projected to turn profit 07/08 year things are looking up for MS

bulletstopper said: I would think that sales in any market North American or otherwise, would be a large component in "beating" Sony. Maybe I am wrong in this but if Sony sells 30 million PS3s in Japan and Microsoft sells 200K, doesn't that create a large gap? A sale is a sale, and if a large segment of the console buying public is basicly refusing to buy your product, then I think you have a problem. Since profits don't seem to be an issue for Microsofts 360, since they never had any, I guess you could assume that sale don't matter either. The 360 has only sold 10 million in a little under 2 years. That's pretty bad, especially considering they have never made a dime. This is just a sneaking suspicion but I think Bill Gates is in this to make money. You bet he wants that Japanese Yen. He will continue to try and get it.

sad part is its the same with sony, theyve lost ALOT of money on the ps3s, and they are only at 4 m and not to long till its a full year as well.

Xbox 360 has support from Japan. Well... Sort of... It's not like they aren't getting sold there at all.

From current sales I really wonder if any of these consoles are going to come out on top or if Japan is going to really be a battle between PSP and DS. Doing a quick look the DS has been the number one seller in Japan for the last several weeks by far, and the PSP has had a pretty good hold on slot three, I guess this also might be just supply constraints but otherwise it looks like handhelds may be much more important to Japanese gamers than consoles. The US also has a heavy presence in handhlds that is true but the margin is much smaller at least in the recent weeks as is the difference in recent software distribution with the US having a smaller chunk going to handhelds. This is really just guessing, I find Japan rather mysterious with their weird taste in Pachinko games and such, but if Japan is going to being a handheld dominated market I am not sure how important it is to the nex-gen console conflict.