Microsoft plans to complete with Wii using Rare-developed games and by introducing new casual titles.
A report on Dow Jones Newswires says that Microsoft is looking to compete much closer with the Nintendo Wii and its wider, family audience by creating more family-focused video games.
In a bid to raise 360 sales further, Microsoft Asia-Pacific's Alan Bowman said the company plans to cater for different age groups, naming cartoon-based titles and word-puzzle games as specific types of new titles the firm wants to introduce.
"A key strategy for us is to give broad choice for people. You need to provide content which broadens your base of users from core gamers to different age groups," said Bowman.
"We're doing a lot in broadening the content for the Xbox 360."
UK studio Rare is key to the push, he added, saying the studio was already developing new games for wide audiences.
"Now they're starting to produce games with very, very broad appeal," Bowman said. He added: "If you look at Guitar Hero, it's something which can be played by the whole family, by kids, males, females, adults.