Perception is also playing an important part: Japan is seen as sweet and soft when America as strong and violent. The Activision Blizzard deal is not going to help changing this perception at all, and it could be fatal here and destroy the last breath for the XBOX in UE. This move is seen as violent, arrogant and agressive (remember the 10000 layoff before the deal? People know that happened, people know how MS is a sh*tty brand with no ethic). It is the worst image an American brand can send to the rest of the world... "we will get you, no matter what" Something you don't want to mess with when doing your hobby.
Who wants to deal with a brand that could give all your personal informations to the US gouvernement, including spying on you with Kinect? Wrong or not, privacy is also something you don't want to mess with here. And there is also that astronomical deal with the French gvt to equip school's pc that shoked a lot of people, instead of getting linux. And the list goes on and on against MS.
Oh and there is the way MS treated UE with the launch of XBOX ONE... like we were the last of the latest economic zone. It changed the perception of the brand, even for its fans. "you don't care about UE, okey, f*ck you!" And that was it. XBOX is dead here, and it's 100% on MS fault, mostly...
Blaming French for being French without an acknowledge that 100% American creation called Q is mind blowing to me and demonstrates how the violent and arrogant perception for America is legist. Remember how Q and its fans target, and still do, Bill Gates... It's quite fascinating to see how self called patriotes did destroy with Q everything that America built in the rest of the world, including MS. Because Apple, on the opposite, is quite loved and, like it or not, an Apple console will destroy XBOX in UE. And just a little more thing: Q in French also means ass!
But it's one way to see things. The other is sh*ty games, sh*tty hadwares, sh*tty prices, sh*tty sells, and voilà!