Sure, the 360 is routinely outsold by used panties every week, but the Japanese recognize good design when they see it. The aptly named Good Design awards are given to many products that exhibit, what else, good design -- previous winners include the PSP and the DS Lite. The award was given to the 360 this year for many of its spiffy features, including:
Vertical or Horizontal alignment
The iconic ring of light and its functions
The "inhale" concave design
Also noted was the international design effort that put the box together in the first place. Many will recall that the 360 was designed through a collaborative effort between Hers Experimental lab of Japan and Astro Studio of the US. So, congratulations 360, for winning an award that will likely have no impact whatsoever on Japanese sales!