Well, Ninja Gaiden doesn't leap to mind when I think of obscure Japanese games that "western gamers" would be turned off by. And the DOA games (by the same developer too) sell very well on Xbox. It's more that there are not many high profile Japanese games on the system.
Judging from the sales of Pikmin 2, Gamecube owners didn't want Japanese games this month either. Or any games really. I kid, I kid.
That's not GC levels. The PS2 versions are within a couple thousand of the other version. Mario Sunshine for example is units 3million units behind Mario 64 in the US.
I don't know if I think Fable will sell well over time, I think there's a possibility that with the negative word of mouth that it could end up with sales dropping out considerably quite quickly. Also there's seems to be something of a phenomenon with Xbox that I like to call the HHUPE (High Hardcore User Percentage Effect). Didn't KOTOR have a pretty amazing first appearance on the NPD only then to drop quite rapidly and the same with NG? It seems that with some of the hyped Xbox games its almost as if a higher percentage of the potential users are picking up the game at a much earlier stage.