Translated/paraphrased from Nikkei Business via Gamefront:
Moore attributes the fact that Xbox was no able to prevail in Japan to three factors: Xbox is as big as a VCR and the design does not appeal to Japanese tastes. Secondly, there were too few games available, and those that were available did not appeal to Japanese consumers. Finally, Playstation 2 had a two year head start and it would have been impossible to catch up in any event.
'Next time we wont make the same mistakes', says Moore. Xbox2 will have a smaller and simpler design. In Japan Moore wants to offer an extensive software range from the outset, and one that is better suited to Japanese tastes.
Because Sony wants to use Blue-ray Discs with the PS3, it is likely that next to games, films and music will play a larger role. Nikkei Business Publications bases that on a statement by Ken Kutaragi, that an increased convergence of the three media is possible.
According to Peter Moore, Microsoft is retaining the concept of a pure game console with Xbox 2, which will be online-capable from the outset. In particular, an expansion of online services is being targeted, and Internet telephony could be an option.
Moore will not comment on the launch date for Xbox2, repeating only that the competition will not get a head start. He sounds a combative note: Victory in the game business is not decided in a single generation.