To win this generation Microsoft needs Japan. 360 is comparable to the sega genesis in a sense. Both consoles sold better than the competition in North America but in Japan they sold like crap. This gave the competition an opportunity to build its userbase and that eventually lead to the competition winning the console war. I know i'm not discussing variables such as sales in Europe but I have no clue how well the 360 or Genesis did there.

I think Microsoft should keep paying for Japanese RPG development and slowly working away at Japan, but they should also consider focusing a lot more energy instead on Europe and trying to make the Xbox brand as strong there as it is in the U.S., they would likely have much better luck moving more consoles and making more inroads there.

 360 is slightly north of 3 million in Europe, and seems to be more popular in the UK and northern Europe (though still getting decimated by the Wii overall). The Genesis I believe was the first really successful console in Europe, followed by the 2 Playstations (which is why people thought the PS3 would be more successful there, since Playstation is really the brand that gave rise to gaming there and the Game Cube bombed, with the Xbox only doing slightly better).

@White Devil, Thanks of the info. I think the 360 will be a solid number 2 worldwide.

 If the 360 wants to be taken seriously as a contender.... it needs to do way better in Japan.  You can't get the best games from all three markets if you're losing in one of the markets (much like other's have stated) and you'll lose your biggest markets if you can't hold onto Japan.  Look at the DS vs. PSP, the PSP came out roaring in U.S. only to be steamrolled by the D.S. once the D.S. started getting the best games and an updated design.  The same is happening to the 360.  The Wii is steam rolling it's way through...  it can't be stopped now.

Agreed, if they keep feeding out great rpgs that japan likes eventually they might go into it, i also agree they should focus on europe a little more if not alot cause it has alot of potential

to be the marketshare leader i believe it does but other than that i dont think it does.. its selling nicely without japan.. the pricedrop and halo should increase that two fold in the next month..

IMO, I think Microsoft is trying to focus on Europe, buy focusing on Japanese developers more.

Think: Konami makes some of the best soccer games out there (they make PES, right?). Konami also needs strong sales in Japan to function properly since their games aren't always guarenteed uber-sellers in the US (aside from MGS, and a few others). So thereby helping the Japanee market out for Konami, they garner more exclusives to port to PALand.

The Europeans like more eastern fare as opposed to western - in the way of they support east and west very evenly. They love JRPGs, which the X360 doesn't have, and non-EA sports games. Therefore, MS has to garner more Euro and Japanese support for those, which I believe MS is trying to do.

They need japan for sure. There is a very slim chance of it even taking 2nd place in WW sales.

Tell that to Capcom. Their bread and butter has been the Western world for well over a decade.