Microsoft is having a tough time in Japan with the Xbox 360. Despite some major titles such as Idolmaster, Ace Combat and Blue Dragon, the console has never seriously made a dent in a country that has been dominated by home-grown Nintendo and Sony. Earlier reports had even started to speculate that Microsoft was simply calling it quits, given the nearly non-existent sales.
"No, of course we're not pulling out," said Microsoft EMEA VP Chris Lewis at GamesCom to 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."
Even with the big titles going multi-platform, there is still life in the market, insists Microsoft. While major retailers in Japan are scaling back on Xbox 360, Microsoft believes that it has a lot to offer consumers, despite stiff competition.
"Nintendo, particularly with the Wii, have opened up a market opportunity there," Lewis offered. "We've leapfrogged that handheld technology with Kinect. What we're seeing is users love using their own body without worrying about how to work a controller. So we see ourselves as, frankly, a company that does bring an awful lot of firsts, and we've enjoyed fabulous success with Kinect."
"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."
TGS is September 15, and Microsoft will be in full force to continue support and showcase the Kinect even more.

