XBox has a lot of potential, but it doesn't have good followership outside of North America. A lot of good games come from countries outside of North America. In order for XBox to reach its full potential, these countries will need to accept the Xbox the way they have the PS2 and the number and quality of games will need to improve.
Well, North America does account for 55% of entire global video gaming market. The X-Box is kicking ass over here, and will have 300+ titles by the end of the year so I don't see what your point is.
This is a typical Japanese sales chart:
1.Kingdom Hearts.PS2.58,123.582,222
2.ARMORED CORE3.PS2.33,631.148,727
3.From TV animation ONE PEACE.PS.31,870.365,283
4.Super Robot Taisen IMPACT.PS2.30,737.489,002
5.Tekken 4.PS2.24,542.253,949
6.Fire Emblem.GBA.22,430.167,250
7.Nobunaga's Ambition Ranseiki.PS2.16,462.49,223
8.Pawapuro Kum Pocket 4.GBA.14,550.152,838
9.Sega 2002 J.LEAGUE soccer team.PS2.11,321.431,642
10.Onimusha 2.PS2.9,802.908,060
11.Luna Legends.GBA.9,660.9,660
12.Gundam Fed vs Jion DX.DC.9,278.9,278
13.Biohazard.GC.7,833.156,921
The point is, that most Japanese games never make it to the U.S., because of excessive wierdness or differences in gaming preferences. Most games sold in the U.S. are made by American or European software developers.
The X-Box is doing fairly well in Europe since the price cut. They've sold over a million units over there, and have a comfortable lead over Gamecube.
As for Japan, American electronics goods have never done well over there. Have you taken a look at the trade deficit lately? Mercantilism is the national religion of the orient. Japan's entire national pride is based on their manufacturing sector - especially their consumer electronics industry - which in recent years has been going down the crapper. If you're Japanese and you're somehow able to find an American television set for sale in Japan, and you buy it, you're basically excommunicated from Japanese society. They take this sh|t really seriously over there. I am not kidding.
Microsoft was told by a lot of industry analysts that it would be pointless to peddle their X-Box in Japan. Even if the X-Box was the greatest thing since sliced bread and Microsoft was practically giving it away for free over there, no Japanese would take it, because there's a deep visceral hatred over there for American electronics.
Oh well, the X-Box is a huge success in the U.S. (which accounts for half of the world's video gaming market, as pointed out previously) and Microsoft has got games lined up out the wazoo, as well a $60 billion war chest. What more could you ask for? LOL.