Montreal -
I don't believe that Microsoft is struggling outside of the shooter market, by any means. However, it does establish the Xbox as "shooter heavy" with the majority of FPS sales being on the 360, even for similar games on other consoles.
More than anything, we've seen the Xbox 360 become the "Western Console" of choice. It features more Western-Centric games than any other console this gen, at a price of less Eastern Fare.
Think about the genres that Microsoft has a near-monopoly on:
Shooters
American Sports (Football, Baseball, Basketball)
Racing (to an extent)
Western RPGs
Real-Time Strategy
In those 5 catagories, the X360 is unmatched. Also, one needs to look at Guitar Hero and Rock Band sales to see, and know that the 360 has a good audience outside of what we percieve as being "hardcore".
However, the issue is convincing previous Eastern-Heavy PS2 owners that bought JRPGs, Platformers, and Puzzle games to come to the 360. That's where the issues lie.
Back from the dead, I'm afraid.
