Prospects of Japanese good results are not very bright for the American console manufacturer Microsoft. Three months before the release in Japan of the new Xbox One, there is still a lot to do and Microsoft’s executives are wondering which strategy they should adopt. Since the introduction of the first Xbox in 2001, the Xbox consoles have been very successful all around the world with more than 100.000 million units sold , mainly in the North American and European markets. Microsoft wanted to enter the Japanese market in 2002 with the Xbox to build on its success in its home market and create a buzz ahead of its launch in Europe. However since its entry, Microsoft is struggling to prove its presence in Japan. Sales represent barely 2% of the market, far behind the 75% of market shares owned by Nintendo. Japan is characterized by a very competitive video game industry and customer specific needs. It is traditionally a difficult market to enter. But if Microsoft makes a cautious move, Japan will be a tempting prize.