In a recent interview with Weekly Famitsu, Xbox Head Phil Spencer admitted that the Xbox One is not performing at all as Microsoft would like.
He did advise that the Xbox One S would be released in the region at the end of the year and he promised to make a concerted effort to connect with Japanese gamers and grow the Xbox One audience. Spencer’s theory on why the Xbox One isn’t popular is its lack of games that Japanese gamers traditionally enjoy.
When the Xbox 360 was released, it included titles like Blue Dragon and Lost Odyssey in its lineup which helped to grow a Japanese audience. Spencer said that Microsoft has good relationships with Japanese developers, but he understands why they would be hesitant to develop for a console with limited exposure in the region.
Spencer pointed to ReCore, Scalebound and Final Fantasy XV as titles on Xbox One that were developed by Japanese developers with Japanese sensibilities and he hopes to see more in the future. He also said that he believes a healthy competition between Nintendo, Microsoft and Sony can only be for the good of the industry.