Has The Xbox Failed In Japan?

Thanks to GameSpy for its article interviewing Microsoft executives about the Xbox's popularity in Japan. According to the article, 400,000 is the 'magic number': "...the number of Xbox consoles Microsoft has sold in Japan since launching the system in February, 2002. It is roughly the number of copies of Grand Theft Auto that Capcom has sold into the Japanese market. And, historically speaking, it is the approximate number of 3DO consoles in Japan as well." Apparently, "'That is the yogei-acceptable number in Japan'. [The term "yogei" refers to foreign or Western.]" However, Mike Fischer of Microsoft suggests that "game developers are tired of Sony's dominance in the market, and that that more Japanese-appropriate hardware will lead to better sales in Japan which will lead support from companies like Square/Enix which will then lead even greater acceptance in Japan."