Microsoft can. It's just about increasing the diversity of the library, and nothing more or less.
The Xbox 360 has shown that when a game from a new genre comes out, it does well.
Considering the spikes with the following games:
Ridge Racer 6
Dead or Alive 4
Enchanted Arms
N3
Dead Rising
Blue Dragon
IdolM@ster
Gears of War
Trusty Bell
Halo 3
Ace Combat 6
Dynasty Warriors 5
*most* of those games were fairly new genres to open up for the X360 (3 RPGs listed though). When any given new genre was opened up on the X360, the X360 sold fairly well.
The X360 has a solid base of users that are now buying alot of games - X360 games in the top-50 are a now weekly occurance. 2 years ago, despite being the only next-gen system, rarely had a game chart for more than 1 week in the top 50. In the past 3 months, there have been multiple titles in the top-50.
So what matters now is that MS focuses on diversifying the library, and aquire a few more exclusives. I think that DMC4, RE5, SH5, and the other various PS3/X360 Multi-plats will help move hardware for the X360, but it needs more exclusives like Banjo Kazooie 3, Ninja Gaiden 2, and Infinite Undiscovery.
That and MS needs to hire decent marketing firms in Japan.
Another thing I thought might be good: MS needs to "partner" with a local publisher to re-brand and market the X360 - like Capcom, Namco, or Sega. If they could "get in bed" with any of the 3, and get more exclusives, and a better brand image, it might do wonders for the system.
Back from the dead, I'm afraid.
