Microsoft has re-focused its sights on Europe following worldwide Xbox 360 sales being overtaken by Nintendo's Wii, GamesIndustry.biz reports.
In an interview with Bloomberg, Microsoft's group product manager Aaron Greenberg said "The number one objective is to win on a global basis and that may mean winning some markets and losing others."
"Europe is our priority focus right now."
Last week, Microsoft said it planned to increase the number of game titles in Japan. Even so, sales of the Xbox 360 in that country continue to lag far behind the competition. Its predecessor, the original Xbox, was outsold in Japan 24-to-1 by the PS2 and 6-to-1 by the GameCube.
"It's difficult to see Microsoft capturing a significant share'' in Japan, said Hiroshi Kamide, a Tokyo-based games analyst at KBC Securities 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."
Since 2005, Microsoft has sold 446,201 Xbox 360s in Japan, accounting for just 8.7 per cent of the new console market as of September 9.
More than 3.49 million Wii consoles and 1.17 million PlayStation 3 consoles have been sold in Japan since their launch in 2006.
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