Let's see. If I was Steve Ballmer, head honcho at Microsoft, I'd probably wish I were Steve Jobs!
Seriously, I would target the world's largest economies (US and EU) first, followed by the world's most populous countries (China and India). I wouldn't waste time and energy wooing Japan.
Notwithstanding, my first priority would be to overhaul Xbox Support. What's selling the product isn't merit, but its quality of service.
[size=-2]P.S. The road to victory isn't Europe -- it is aggregate sales.[/size]
To win Europe you will need those Japanese games. To get those Japanese games you need to woo those Japanese developers. To woo those Japanese developers you need to make a concerted effort in Japan. This is the reason why Microsoft is still plugging away in Japan. Everything is inter-dependent.