Xbox 360: An insider's story

GR: Why isn't Microsoft enjoying more success in Japan?

DT: Japanese gamers like local products and local content, and that's different from what launches in the rest of the world. Microsoft has always been pretty light on Japanese specific content, although it has tried very hard to get Japanese developers on board.

But Microsoft launched the original Xbox without many good games. It had the big problem of the disc scratching and the box being overly large for Japanese homes, so the Xbox brand name was crippled to start with. And as it relaunched into that environment it was hard for Microsoft to make any gains.