I guess this was to be expected. BusinessWeek reports that Japanese customers bought less than half of the available Xbox 360 units available during the consoles debut. Considering that Japan is home to Nintendo and Sony, Microsoft still has an uphill battle with the 360.
No doubt MS has a tough audience over there, but it’s because the games available for the 360 are nothing like what Japanese players want. Microsoft has to really negotiate with game companies to introduce unique games over there. Not many people in the US like playing Japanese games, so the same goes for over there. Read the post at Anand.