Launching an American gaming console in Japan would at one time have been a fantasy. Yet after just such a launch, I can’t help but think the hardware is strong enough to stand-out on its own.

Microsoft Corp. (MSFT.O: Quote, Profile, Research) is counting on the online gaming capability and high-definition graphics of its Xbox 360 console to win a new following in Japan, a key market in its quest to unseat Sony Corp. as the dominant game console maker, a senior executive said on Friday.

Microsoft, which launched the Xbox 360 in Japan this week, has struggled hard to gain ground in that market against home-grown rivals Nintendo Co Ltd. (7974.OS: Quote, Profile, Research) and Sony Corp. (6758.T: Quote, Profile, Research), whose PlayStation 2 console is the global best seller.

“We are up and running here,” Microsoft’s Xbox marketing chief Peter Moore told Reuters in an interview from Tokyo.

Microsoft, which was a distant third in Japan with its first Xbox, held a launch party for hard-core gamers in Tokyo’s Shibuya, a trendy shopping and entertainment center. [Read the rest]