There's no denying that 2006 was a good year for Microsoft. The Xbox 360 spent the year selling consoles and generating hit after hit before the competition even got out the door.

There's no time to sit and enjoy success, however: the competition is now out of said door and gaining fast. Here are my top picks for what Microsoft should do in the new year to stay competitive, and stay on top:

5. Lower the cost of Xbox Live. Wait, no! Increase the cost of Xbox Live!

Tired of smack talking thirteen-year-olds ruining a perfectly decent
online match? While mommy might be willing to shell out $50 a year so
Timmy can call you names she'd be a lot less likely to drop a Ben
Franklin.

4. Bigger friggin' hard drives.

Really, Microsoft: twenty gigs? For a hundred bucks? No one is
falling for that. By this time next year I had better be saving
high-def movies onto my 120 gig drive that I bought for the same price
you've been charging for that measly twenty. Better yet: just let us
buy any old drive off the shelf and install it ourselves.

3. Keep working Japan.

Blue Dragon is a great start - keep it up! It's obviously going to take some effort to get Japanese developers onboard with the 360 but the results would be more than worth it - Japanese games sell great in Japan and America.

2. Dump the points.

I don't appreciate having to make an interest free deposit to the bank
of Microsoft every time I want to download a TV show or Live Arcade
game. Wise up and just charge us for what we want, Microsoft. If
Cloning Clyde is ten bucks, how about you just charge me ten bucks?

1. No more shooters.
You heard me. Let's go a year without shooting an alien, a space
marine, or a mutant giraffe. It's not that I have a grudge against
the genre -- I'm having as much fun with the Lost Planet online demo
as the next gamer -- but it's time for a little diversity. Viva uh...Viva Pinata!