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Things that need to happen to give the XBox 360 a chance:

  1. $100 price cut. Because of how long it has been on the market without major price reductions, I believe it is safe to say that anyone who wants an XBox 360 at its current price level probably already owns one. Microsoft needs a fairly major price reduction.
  2. Large 'Platnium Games' library. It should be (somewhat) embarrassing to Microsoft that 30 months into the life of the XBox 360 they still haven't produced a formal 'Platnium Games' library; if they dropped the price of many of their biggest games from 2005, 2006, and the first half of 2007 and advertized (with cherry-picked reviews) the high quality nature of these budget games people would see the value in the XBox 360's library.
  3. The announcement and release of some games that have a much broader appeal. The XBox 360 has built a reputation as a great place to play Shooters, Racing Simulations and Realistic Sports Games; Microsoft could really use some kart-racers, cartoonie sports games, puzzle games, trivia games, and several other games in a variety of genres which a large portion of their current userbase would see no value in.