New console launches from Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT) are just around the corner, and Japan is receiving unexpected focus as a sales battleground in the latest iteration of the console wars. Bloomberg published a report on Nov. 7 citing unidentified sources at Sony who said the company would be devoting less resources to the Japanese market following underwhelming performance for the PlayStation 4 console in the territory. Sony moved its gaming headquarters from Japan to California in 2016, and subsequent reports have generally supported the idea that the PlayStation business has adopted a more Western-centric approach. While Sony appears to be de-emphasizing Japan, Microsoft is gearing up for another attempt to build its Xbox brand in the country -- and it could make major announcements on that front in the near future. Image source: Microsoft. Can Xbox score wins in Japan? Following reports that Sony had sidelined Japanese promotion and marketing teams ahead of PlayStation 5's launch, the company issued clarifying comments stating that the market remains "of utmost importance." PlayStation 5 will almost certainly outsell Microsoft's next-generation Xbox family in Japan, but the console market in the country is declining amid market preference for mobile gaming and Nintendo's Switch handheld-console hybrid. It's not surprising to hear that Sony views Western markets as higher priority, and reduced focus on Japan could give Microsoft an opportunity to advance its long-term strategy in the region. Microsoft's previous efforts to grow Xbox in Japan were largely unsuccessful, but the company has shown it's willing to make big investments this console cycle as part of a broader long-term strategy in gaming. Microsoft is reportedly looking to acquire Japanese gaming companies, and it could make big deals to bolster Xbox and related services on PC and mobile to further its ambitions. 10 stocks we like better than MicrosoftWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft. The Motley Fool recommends Nintendo and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool has a disclosure policy.Source