The 360 is just building a more diversified lineup. Thats not a bad thing. May I remind you that viva sold over 1 million copies (how it got there is irrelevant), and scene it has nearly half a million sales in NA alone. So there is definitely a market on the 360 for casual games. Its just not bigger then Nintendo's but its a market that can be tapped and hopefully increased in size nonetheless.
The vast majority of the 360's exclusive software this year is hardcore. Its just not FPS. Which isn't a bad thing at all. What we're seeing in essentially Microsoft increasingly diversify their library. Which means that it'll appeal to more people which is only a good thing.
EDIT. The 360 doesn't just have Fable 3 competing with FF13, thats just silly. The 360 has Infinite Undiscovery + Tales + Cry On (if it makes it this year). Besides FF 13 is not getting released this year, so its more like the ps3 doesn't have anything to deal with the 360's JRPG lineup just yet. Thats not even including Fable which isn't even JRPG.
Furthermore the 360 has the new splinter cell to compete with MGS (MGS obviously being the better game), gears 2 to compete with Resistance and killzone wont even make it this year.
So back to my point. The 360 seemingly is defending its hardcore roots, whilst also diversifying its lineup.
