If this was a perfect world then that would be the thing to do, but it is not so MS have to keep trying in Japan. Sony and Nintendo are currently doing too good in Japan for MS to just drop it and ignore it. How will Japan developers react? because I really don't see them making the effort to support MS in EU/Other and America if the console is not supported on their home turf.

They can't get up and leave Sony and Nintendo to dominate Japan by them self, the PS3 being the only HD console in Japan could spell a world wide disaster for Microsoft games division. 

Tons of pricecuts and they founded new JRPG IPs such as Infinite Undiscovery, Blue Dragon and Lost Odyssey.

As someone who's followed weekly console sales for a long time I actually don't think they're doing as bad as people think they are here.

If you told me a few years ago that the next Xbox would sell a million in Japan I'd laugh in your face! I always laughed when the first Xbox sold around 400 units a week most of the time (yes I didn't used to like Xbox how silly I was!) and now it's closer to 4,000! Which is still not very good but still a big increase which shows that they're making progress with their brand in Japan. I'm not sure they'll ever be #1 in Japan but I never thought they'd sell as many as they are now over there so I think considering the circumstances of it being a 'western console' I think it's done ok tbh.

A mediacore attempt at a concrete genre. If your going to hit, KO. Those IPs are irrelevant.

Well I don't think a "F*** you" is needed, wether its against Japanese.. Whales or Dolphins but yer it seems like the Japanese are quite biased against foreign products...

or it could be the fact that there has NEVER been a succesfull Xbox console in Japan while Nintendo and Playstation are basically 100% of the market..? Nintendo has the Wii, DS and NES and Playstation has the PS1, PS2 and PSP.. seriously what would you expect?

its like how PS3 is not selling aswell in US as in Other countries.. its not only bias against foreign products.. its the Brand and the IP's.. Halo is nothing in Japan yet HUGE in US.. other way around with games like Final Fantasy and Gran Turismo (although they still have pretty big fanbase's in US)

Absolutely, the sales are pretty much unimportant its the brand awareness that they've achieved that matters more to Microsoft.  At the end of the day the console isn't dead it just never took off, there is still a niche market and Microsoft will continue to try and keep interest to those who want it.  There were people on these site 6 months ago expecting the 360 sales to drop sub 1000 by this years end but in actual fact I believe they've been pretty stable.

To the OP I would say, there is nothing else Microsoft can do with the 360 than what they've done.  Buying more exclusive JRPG games will not make the slightest difference now.

Well also the tons of money MS wasted to bring 3rd party JRPGs to the Xbox360.

That's more than any other company has done for the Japanese. So yes, the 360 deserved much more sales in that area.

All their efforts in Japan are wasted. All the JRPGs they paid for got enhanced PS3 ports over there. They'll never trust Microsoft again.

They should focus on what they do best. The Japanese market is such a minute part of the market for them.

Everyone who is suggesting that Microsoft ignore Japan and the enormous potential for not only profit but developers has the wrong idea.

MS's effort to gain RPG's for the 360 was commendable but if they had made a greater effort to secure some of the heavier hitting titles (Dragon Quest or Final Fantasy for example) then the 360 could easily have done 10X better in Japan.

Star Ocean Tales of Vesperia, these were a good start but not enough.