While it's true that the Software lineup of the 360 is more diverse than the lineup of the XBox, I would argue that this isn't really the point. It's all about perception.
Case in point - the Gamecube. GC had the reputation of being a children's console. Many fans pointed out that this wasn't true because it had 'adult' games such as RE4, RE Zero, Metal Gear Twin Snakes etc. the public didn't see it that way. The public found that a handful of high-profile adult titles weren't enough to significantly alter the perception of a children's console.
Same thing with the 360. Releasing Viva Pinata or some quiz game isn't enough to significantly change people's perception of the 360 being a console for teenage boys and young men. And I think this is the Box's biggest image problem in Europe where shooters simply aren't as popular as in America (at least on consoles). Don't look at all games, just look at the BIG games, the games with high profile. They're dominated by Sci Fi shooters where guys with massive muscles march through endless grey corridors and shoot/decapitate/disembowl massive hordes of enemies. Sure, that's great for boys and young men, but anybody outside of that group would never touch those games.
These games are the videogame equivalent of Steven Seagal action movies. SS movies have their loyal fans, they all turn a profit and always have around 5 Million people who watch them. But in order to be a successful movie studio you also need to release romcoms, comedies, Oscar-worthy dramas, tearjerkers, arthouse, Fantasy, thrillers, love stories etc. (and not just one or two of each, but LOTS). Then you don't just have 5 Million customers but 200 Million.
Action games have a huge image problem in large parts of Europe. Many parents would never buy such games for their kids and outside of their (admittedly large) target group they hold virtually zero appeal.
