The problem with Microsoft trying to push movie downloads in that a lot of people don't have a hard drive/don't have a big enough hard drive to do so.
As for what Microsoft needs to do this generation:
FIX THEIR DAMNED MACHINE. Was 33% rrod, now is supposedly around 16%, still way to high.
Keep pumping out shooters, that is what the majority of your fan base wants. They want Halo, they want Gears. Throw in some other stuff like Mass Effect and Blue Dragon to diversify a little bit.
Hold steady your position. You aren't going to win this generation. Nintendo has outsold you in half the time. You are finally making a profit in your gaming division though. Drop the price before the holidays along with the basic package which is crap for value. Keep going down the path and try to fix all your faults in the next gen.
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