To be fair, the PS4 is bombing pretty hard in Japan as well, hence why Sony has third parties porting their upcoming Vita games to the console as well.

But Microsoft's problem isn't just Japan. The Xbox One is practically nonexistent in continental Europe, literally so for the countries it hasn't even launched in yet. That Eurogamer article about Japan is interesting in that it also tracks their international decline. You can trace the trajectory of them falling off the globe to the erosion of their first party studios, console exclusive PC ports, indie programs, and Japanese partners. Over the last few years, those resources noticeably shifted to Call of Duty co-marketing, Kinect, and the now-infamous Xbox One entertainment push. That's not a great way to sell a console overseas and Microsoft has only been able to mask this decline by how hard they dominated the US and UK charts throughout the entirety of the generation. It doesn't bode well for the health of the industry if Sony is the only viable console manufacturer, although when I compare last generation to its predecessor, the whole "competition is good" argument becomes less and less convincing when it comes to gaming.

On a funny side note, someone photoshopped the empty Japan launch locales with the cardboard cutout audience from Forza Motorsport 5, tweeting it at Microsoft execs who didn't realize it was a joke.