I live in Japan and one thing I thought made the Xbox fail over here is lack of games. Many games released in the US never made it over here. There are some really good games that should have made it here that I wanted.
This time around I pray MS releases ALL games from the US to here at about the same time, just add Japanese subtitles and for Americans here add an English selection. If they release all the games world wide I think they have a good chance. Also Xbox live should work on any region console all over the world. Many people live overseas with American Xboxs and wish to play live from there. MS needs to realize this!