Cheaper Xbox 360 to debut in Japan in March

Even with poor sales, Microsoft isn't giving up on the Japanese market just yet.

Its low-cost Xbox 360 that went on sale for $279 in the US will debut in Japan for around $260 on March 6. Microsoft likely sees the cheaper price as a way to shore up its worldwide sales, which are lagging in the country.

The system has an identical SKU to its US counterpart, the Xbox 360 Arcade. It includes HDMI output, a wireless controller, and 256MB memory card.

During all of 2007, only 257,800 Xbox 360 consoles sold in Japan. While this is markedly better than sales of the original Xbox, it is quite far behind its competitors. 3.6 million Wiis and 1.2 million PS3's sold during the same period.

Microsoft has also fallen behind in the overall console race, selling 17.7 million consoles versus over 20 million for Nintendo. Sony is also seeing a rebound here, selling 10.5 million units so far after a very weak start that many blamed on its high price.

A stronger showing in the Japanese market would do much to keep the 360 one step ahead of Sony, and help it to catch the Wii, which has begun to level off sales-wise after a wildly successful launch.

However, Japanese gamers seem to show a strong preference for Japanese-based gaming companies, something Microsoft is not.