"Europe is our priority focus right now," said Aaron Greenberg, Microsoft's group product manager for Xbox.
After failing to capture market shares in Japan from Sony and Nintendo with a one-year head start, Microsoft may be running out of ideas to woo gamers in Japan and will target video gamers in Europe as the priority. The European gaming market was worth $7.8 billion in 2006; Japan's was $5.9 billion.
"It's difficult to see Microsoft capturing a significant share in Japan; after two years on the market, Xbox's position in the country is such that it makes you wonder whether further efforts are even worth it," said Hiroshi Kamide, a Tokyo-based games analyst at KBC Securities Japan. Kamide also said competition in the U.S. and European markets will make Japan a lower priority for Microsoft.