With only 23,562 units sold within the first week of launch in Japan, Xbox One sales numbers are struggling to gain a foothold vs PS4 in Sony's home territory.

"Microsoft needs to act if it wants to make an attempt to save the Xbox brand in Japan, and while these numbers certainly suggest the possibility of shuttering the operation, the truth is that Japan is just too big a games market to ignore," Dave Their of Forbes wrote.

Xbox One arrived in the country last Sept. 4, but has not shown any improvement in sales since then. Instead, Japan has remained loyal to its hometown hero, PS4.

While the Land of the Rising Sun is obviously Sony's territory, one of the reasons why Xbox One cannot penetrate this market is because of the westernized concepts that do not suit the taste of this Asian nation.

The Xbox One needs games that are specific to the Japanese market in order to elevate excitement.

Head of Xbox, Phil Spencer, was very positive when he announced that Xbox One is welcoming 29 new markets, including Japan.

"But what makes September truly special is that gamers from 28 additional countries will get to experience the games and entertainment on Xbox One for the very first time. I know that many of you have waited patiently since we first announced Xbox One. And it has been very important to both me and the team that we launch with a great experience in your market," Spencer wrote in the official press release.

Amid the dismal Xbox One sales numbers in Japan, Microsoft is also hurdling a few setbacks in China including suspected anti-trust and piracy violations related to Windows OS and Microsoft Office.

These issues may have triggered the tech giant to reschedule Xbox One intro in the country.

"We take great care to ensure that we meet or exceed regulatory standards," said Microsoft said in an e-mail to Reuters, responding to the delayed console launch.

Reuters has also reported that Xbox One will launch in India through Amazon within this week.

Xbox 360, the last gen console of Microsoft, was released in Japan in 2005.