Microsoft have, formally, launched XBox Live in Japan. XBox Live will retail for 6,800 Yen, about USD 50.
The Japanese starter kit includes the Xbox voice communicator headset, A one year subscription to the service, and two games Sega's Phantasy Star Online Episodes I&II, and Zuno Taisen Live(Brain Battle Live). Four mini-games are also available for use with XBox Live, Mahjong, Go, Japanese chess and Reversi.
Indicative of Microsoft's caution regarding Japan, is that the launch has been very low -key, by Microsoft standards and although Japan has seen a lot of hype, the rest of the world, including XBox.com have kept extremely quiet.
MS's entry into that particular market has, so far, been plagued by a series of problems. XBox, upon its Japanese launch, faced hardware issues which resulted in Microsoft replacing a significant number of consoles.
Japan is the home of the console and has a tradition of leading game machine manufacturers. Both of Microsoft's main competitors are based there and have already managed to reach a wide percentage of the population. Cultural issues aside, Microsoft need Japan, getting a claw deep into that particular market may decide who will become the formal Sony chaser.
The basic Microsoft plan calls for Japan loving XBox Live, causing console sales to rise. If the plan even comes close to working out, Microsoft will get a lead on main rivals, Nintendo.