Today tells a different story. Xbox gamers are frustrated at Microsoft for the dire lack of exclusives, especially new intellectual properties, and the heavy focus on the kinnect peripheral. The core fans are growing restless and a lot of them are jumping ship. What's more is that these classic gaming franchises -- Halo, Gears of War, and Fable -- aren't enough to keep the populous interested in the console, not when the competition is tough.
Microsoft have made a huge mistake on striking deals with publishers for timed exclusivity rather than taking chances and investing in indie development studios. The era of third-party exclusives is over; no publisher wants to limit their profits and exposure by signing a full exclusivity contracts... timed exclusivity, maybe, but that's not going to help. Microsoft have already turned away a few notable indie studios who've brought forth innovative gaming ideas (Media Molecule approached Microsoft before Sony) and Microsoft have rejected them. This leaves Microsoft in a pretty bad position; dated game franchises, with the lack of in-house development support.
If noting else, it really seems as if Microsoft just entered the the gaming business to make a quick buck. Not willing to support indie developers with new and innovative games... only sticking to what they know sells; sci-fi first and third person shooters, and racing games. Microsoft have thrown trucks load of cash at the Call of Duty franchise by buying timed exclusivity and commercial rights hoping that it will sell more consoles, and if that is going to remain as their game-plan going into the next generation they may as well quit the gaming business. The bar has been raised, both Sony and Nintendo are taking chances in the industry... it's a little bit insulting to the gamers when Microsoft, a powerhouse in the gaming industry, continue to play it safe for profit's sake.