MS needs to launch with killer instinct 3 and conker 2... Also a guarantee that my console won't break within a year =P

It seems like Toaster Ability is head-to-head with agressive price.

Why would I buy it if it won't even make me breakfast?

imo the 360 will over take the Wii

MS will have the momentum going into the next gen. Nintendo have none, their new console has been announced and shown yet there is no excitement for it. This is on top of MS and Sony showing nothing. Its all a bit Dreamcast to me.

Im not bashing Nintendo, I've been playing their games pretty much all my life and will continue to do so, so long as they keep making them.

You forgot free Xbox Live, or at least free online multiplayer. Until they offer either of those I will never get a Xbox.

1. more/better exclusives
2. free online multiplayer, or better gold incentives ( I don't mind paying but it should be like PSN+ with free games every month)

That's all they need.
exclusives let them win last gen, and the first half this gen, but then they just stopped caring and so PS3 is going out with a bang and xbox is whimpering in the corner. ( and by win i mean gamers talking about them not sales which still, mean nothing)

MS' xbox strategy has been to carve out market share and quietly make profit. This includes having targeted exclusives and publisher deals, MS stopped with the niche exclusives as really, they do nothing for marketshare. Judging by the HD split this gen, which is about 50/50 of the PS2 market, it looks like it's working and they just need to keep doing the same thing next gen. But I get the feeling that they may be shaping up to pull a Sony next gen and use the xbox brand for leveraging other properties, such as phone and tablet, like Sony did with bluray. That may be a mistake.

xbox sold on exclusives, and 360's early days also had those exclusives. since xbox no longer has those people will be moving on, sony continues to give gamers what they want ( exclusives games of high quality) MS hasn't had many since early days of the gen.
MS is already trying to sell gimmicks like kinect and phones though.

Well obviously price is the big thing, but I think big launch titles and a great online service from day 1 is also very key.

And I can't believe you didn't put reliable hardware as an option. I don't think the 720 could survive a fiasco like the RRoD since Playstation is gonna come back stronger than ever and Nintendo is back on it's game.