Joystiq has a really interesting post about consoles in Japan. Everyone knows that Japan hates the Xbox and with the 360 being released there in December, everyone's eyes are on the Land of the Rising Sun to see how Microsoft fairs this time around.
What's interesting is that right now, in Japan, handhelds are the console of choice, particularly Nintendo's DS. In fact, there are 406 DS's to every 1 Xbox in Japan. Again, that is a stat of 406:1.
Microsoft has said in the past that they are not interested in making any handheld hardware, but with stats like that for a handheld, I think Microsoft has something to think about.
Besides, something tells me that despite Japan's growing interest in the Xbox 360, they still aren't going to be able to pull it off. I mean, there are NO RPG titles at launch and they only have 12 backwards compatible games...which is probably more than there are people playing the Xbox anyway, but still. It sure looks bad! If I lived in Japan I'd be put off.
I guess we'll just have to wait and see.