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I think what's telling is when you add up the FPS/TPS, Sports, Fighting, and Driving games = 59%

These are essentially MORE of the SAME from the last generation.  That's what [another company] means when they talk about growing the market. 

Some people really like these games, of course, but personally, I do not enjoy Sports/Fighting/Driving at all (for the most part, they feel like the same experience, just repackaged.)  As I said above, FPS seems to be more immersive, and more FUN this generation (for me at least), but there's still a stigma about FPS that some gamers just don't like, or, if they do, they prefer FPS on PC anyway.  And TPS is, actually, one of my favorite genres.

My point then, is that, for many gamers (not all), they can look at 3/5's of the 360 library and say "been there, played that."  I am a 360 owner, and I really enjoy the games I have for it, but I'd lying to you if I said I felt like I had a really expansive selection of games to choose from.  Now, the upcoming games for q4 . . .  wow.  But right now . . . meh.