”It is not hard to figure out why. Lined up on a rack near the display are the only nine games sold for Xbox 360. But behind it are some 3,000 games, spread across six store aisles, for Microsoft's biggest rival here: the Sony PlayStation 2.”
Aside from the perceived lack of content, a big issue in Japan is not having an alternative, and many are choosing to wait until the release of the PlayStation 3 before deciding what console to nab. Unlike in the U.S. where demand far exceeded supply, less than half of the available 360s sold during opening day in Japan. This is similar to what occurred during the release of the original Xbox. Overall, Microsoft is having a hard time competing with Sony and Nintendo, both of which have strong roots in Japan. How the hardware will continue to fare, only time will tell.