OCT. 9, 2008 • Sales of the Xbox 360 in Japan have increased enough for Microsoft to increase its shipments there. Thanks to the popularity of Namco Bandai’s Tales of Vesperia and a price cut on 360 hardware in Japan, consumers are finding it difficult to buy the system. Enterbrain Inc. says the Xbox 360 sold 54,000 units during September, beating the PS3’s 33,000 tally.

Impact: The Japan market is very much driven by specific title releases.  In other words, a hit title can drive a very clear uptick in hardware sales.  Of course, price cuts never hurt.  That being said, it is important not to read too much into the September increase.  DFC has forecasted that the Xbox 360 will not gain significant penetration in Japan and neither Tales of Vesperia or the most recent price reduction will cause us to change our forecasts.