In response to troubling reports that Japanese tech retailers had begun reducing the amount of shelf space they're allotting for the Xbox 360, Microsoft Europe's Chris Lewis confirmed the company has no intention of giving up on the market. "No, of course we're not pulling out," Lewis explained in a recent interview with Eurogamer.

Lewis said that the going is somewhat tough overseas. "It's a challenging market. We are up against very strong competition there." He added, "We're very respectful of what Sony and Nintendo do and where they've come from and what they bring," but thinks the Kinect will help penetrate the nation's motion-control-friendly consumer base. Now, if only they could simultaneously reach the giant mech-combat community as well. Oh wait! They totally are.
http://www.joystiq.com/2011/08/18/microsoft-responds-to-claims-of-japanese-retailers-phasing-out-3/