Hey Cheapy….I don't buy your friend's opinion that the reason why the 360 isn't doing well in japan is because the original Xbox failed in Japan so badly that it continues to taint the appeal of the 360 as well.
Granted the original massive 'duke' controllers were too large for the J market, but it turns out they were too large for the US and EU market as well, given that the smaller revamped controllers developed for Japan after their poor reception of the duke controllers were ultimately used to replace the duke controllers worldwide.
As for the size of the xbox itself, yes it was bigger and far less elegant than the PS2, but if a boat anchor like the original PS3 can make it in Japan, I don't know if console size is really that much of an issue in the grand scheme of things.
As for games, SEGA and Tecmo were heavily invested in the Xbox, so it also wasn't a complete lack of J developer support that doomed the xbox in Japan, although some of the bigger firms like Capcom and Konami were were fairly tepid in their support or came out with things like Namco's Xbox exclusive First Person Puncher
Breakdown…a game that failed to attract the interest of hardly anyone in BOTH Japan and the US.
I think it was simply a case that most J folks were happy enough with the PS2 offerings (likely in no short order due to the large number of PS2 exclusives) and what the Xbox had to offer (a lot of FPS type games) wasn't that compelling to the average J gamer. J gamers really liked the PS1, and they really liked the PS2, so I think most J gamers felt no need to change things up and decided that, of course, the PS3 was the way to go in this current generation. The 360 had a much more J friendly style and fairly strong software (and a much better software assortment in the first 24 months than the PS3 as well) involvement and it still it got no traction in Japan. The biggest obstacle the 360 has in Japan, in my opinion, is that is simply does not have the word playstation on it.
And on completely separate topic, while the food in Japan can be amazing, you are missing out some top notch USA food science on display in this Transformers themed Hostess snack product…..
Snowballimus Optimus Prime