Microsoft is getting a more varied game selection, but I think alot of people don't realize it yet. Before Halo 3, the sales were mediocre at the best.
If they want big successes (like PS2), they really need a couple more exclusives from non FPS genres that have the same hype and success like Halo.
For a start, promote the jRPG lineup in the west. There are quite a few non-Japanese people that like those kind of games - maybe even more than the Japanese themselves in current trends. The only marketing I'm seeing so far for LO is word of mouth.
"Naturally the common people don't want war: Neither in Russia, nor in England, nor for that matter in Germany. That is understood. But, after all, IT IS THE LEADERS of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is TELL THEM THEY ARE BEING ATTACKED, and denounce the peacemakers for lack of patriotism and exposing the country to danger. IT WORKS THE SAME IN ANY COUNTRY." --Hermann Goering, leading Nazi party member, at the Nuremberg War Crime Trials
Conservatives: Pushing for a small enough government to be a guest in your living room, or even better - your uterus.