I don't think anyone's done a proper study of the European market, but what I feel is needed is diversity. People have a tendency to look at the top selling games in a market and decide that defines the interests and sets the agenda for what software needs to be produced, but in my guess, it's the smaller titles that make the difference. Every platform has racers, shooters, WWII games, StarWars games, and sports. If that's all you care for, you can grab any console. The differentiating factors are the other titles. Looking at Europe, SingStar, EyeToy, and Buzz have proven popular. But as well as that, there's all the unpopular games that count as well. Rub-a-dub and flOw might not sell a million, but they offer something unique to the few tens of thousands (or however many) that are interested. Then the choice is XB360 with Fifa, GTA and Generic-Track-Racer 202 without quirky little games that offer something out of the ordinary, or PS3 with Fifa, GTA and Generic-Track-Racer 202, and also Eye of Judgement, flOw and Rub-a-dub.
Then of course there's the marketting and price aspects. I don't know what Microsoft's reputation is across Europe, but my gut feeling is 'boo to MS!' They've provided 10 years of operating systems that crap out on people, while I don't know of anything they've done that has afforded them positive reputation. I've never met an Ordinary Joe in the UK who had something good to say about using computers. The only time I hear people say a computer is nice to use, they're talking about Macs. As for the XBox reputation, as I don't read up on the device, my only understanding of the platform is what I glean from general discussion. The top talked about games are often shooters, so even if XB360 has few shooters, it sounds like that's all there is to play on it. As for Live! Arcade, that may have lots of great little abstract titles for all I know, but all I hear about are nostalgia remakes with their ugly 80s graphics. Even if the platform is far more balanced and diverse than general consensus would have us believe, failure to inform the masses of that means the consensus persists. It's all very well saying 'XB360 has mostly shooters is a myth' but that myth won't go away unless the reality is communicated effectively! Of the TV adverts I've seen for XB360, they're shooters. Lost Planet and GRAW and GOW and ones I remember. I don't recall seeing any other ads.
I dare say something MS doesn't appreciate (which is an American stereotype!) is art. It's all loud, brash, and in-your-face. Quiet, subtle games aren't something you associate with the XB brand. Same with their adverts. It feels, to me at least, in my vague, never really paid much attention kind of way, that MS is an American company being American everywhere, as the stereotype would have us expect them to behave. What they need to do is have a European arm that is solely European, with European games studios writing software without any great concern for how things happening in Europe will be appreciated in the US. Sony, for example, have produced European titles released first (or exclusively) in Europe, that only later make their way across the Big Pond. You don't have MS working on anything European. The European studios MS does own are working on international titles, with a definite 'must work well with the big US market' slant. I mean, the UK developer Rare produced a game about Pinatas with a US TV series to accompany it! Pinatas may be all the rage in the US, but they mean nothing over here. The best Eurodev they have at the moment is Lionhead, which has a definite English touch to it's creations.
I'll add that of course these opinions are subjective! I don't read up much on platforms. I nose around websites and forums and hear what's intersting people on platforms, and have a look. In that regard I think I'm quite representative of the mainstream gamer. If I have any wrong ideas about what a platform has to offer, it's primarily because that platform hasn't communicated effectively in a way I'll pick up, producing titles that the users care to talk about. With the technology it's different because I actively research that. With the software libraries and functions, I osmose the chit-chat of the masses, so any wrong ideas I have in the above are probably equally wrong in the mainstream too, depending on where they look. Thus as well as producing a balanced system that's not all about million unit best sellers, but also just massive diversity, it has to be presented effectively as such.