Original Article: http://gamasutra.com/features/20060719/wen_03.shtml
"I don't feel that the Japanese market ultimately matters to Microsoft. In fact, if you ask them right now, I think they would tell you the 360 is already a success. For Microsoft, the Xbox 360 is a marathon race for the living room. So they are in this for the long haul.
"I am not sure Microsoft did anything horribly wrong with Japan. The problem they face is that this is a market dominated by Sony, who employs many people in that country and are loyal to those products. If Microsoft has done anything wrong that needs to be fixed, it is a lack of understanding of the Japanese market.
"Sony and Nintendo do well in Japan because they have a deep understanding of their consumers' lifestyles. Microsoft has created a lifestyle product in the 360 and much of the lifestyle it caters to is U.S.- and U.K.-based. So for Microsoft to succeed in Japan, they need great games for that market, but they also need to provide a product that fits into the Japanese lifestyle and culture. That may mean a very different looking and feeling Xbox 360 [for Japan].
"They definitely need Japanese developers for Japan-based games. I don't think they need it for games outside the Japanese market. Games are best created when they are born out of the culture they are developed in, and it is those games that I think do best in those markets.
"The Wii is different and unique. One big question is how will U.S. gamers as a whole grasp [the Wii] and will it just be a niche product in the U.S. -- something people only bring out during parties, as opposed to something you play for hours upon hours? The Wii game experience is so new that I'm not sure we can answer that at this point."