The problem:Microsoft doesn't have memorable IP's outside of Halo. Gears is their most memorable third party this generation. They aren't synonymous with any great characters outside of that so no, they could not be represented as providing gamers with the type of memories Sony and Nintendo have provided.
The fix: They need to revitalize Killer Instinct and make it a name people can remember on the 360. Fans have been begging for it, Microsoft has been ignoring it.
Thats the difference between Microsoft and Sony. Sony listens to their base who asked for a Super Smash type game.
The only hope for Microsoft having a great party game is the memory of how great Rare was before Microsoft bought them. Titles that make you think of Nintendo when you see them.
