I base my opinion on the examples of companies like SNK, NEC, Nintendo, SEGA etc. Most of the console manufacturers are based on Japan. Each one of the above companies has been involved in cosnole releases that were successful in Japan but failed in other markets. Yet, the success in the Japanese market was enough to keep them going. Most people underestimate the power of the Japanese market, but honestly, the Japanese market is a lot more powerful than what people believe since the ration of console per capita is much higher than the corresponding ratio in the USA and Europe.
Oh, BTW, I am talking about hardware here, not software...