Microsoft's response:
"Microsoft has responded to recent concern over the Xbox 360 in Japan, dismissing the suggestion it will pull out of the market."
“No, of course we're not pulling out,” Chris Lewis, Microsoft's European boss, told Eurogamer. “It's a challenging market. We are up against very strong competition there. All of our competition is strong. We're very respectful of what Sony and Nintendo do and where they've come from and what they bring."
“Japan remains important to us. We're very committed to that market. The development community there is very important. Tokyo Game Show will be a notable element in the year as usual.”
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Simplicity is the ultimate sophistication.