'We won't repeat Japanese failure' - Moore

Microsoft VP Peter Moore, head of the company's worldwide marketing and publishing for Xbox, has told a Japanese business publication that the firm's next console will not repeat the mistakes which were made with Xbox in Japan.

Speaking candidly with Nikkei Business, Moore admitted that a number of factors had prevented the Xbox from being a success in Japan - including the size and design of the hardware and the lack of compelling software for the market.

However, he was adamant that the company has learned from the experience of the current generation, saying that "we won't repeat that failure next time" and confirming that the company plans to make its next console smaller, simpler, and better-supported by local developers.

He told the magazine that Microsoft is already offering support to Japanese developers working on Xbox 2 titles, and emphasised that getting Japanese development support for the console in order to create titles with local appeal is a priority for the firm.

Moore also revealed the gulf between Microsoft's next-generation plans and those of rival Sony, saying that "first and foremost, we're building a gaming machine" - a clear distinction with Sony's multimedia ambitions for the PlayStation brand.

However, he did confirm that the company won't be passing up on obvious chances to leverage its position with Xbox, such as using the broadband network gaming system in the console for Voice Over IP telecommunications.