XBLA: A Case Study in What Not To Do

I love classic games, and I love seeing what smaller developers are doing outside the realm of traditional retail based games on Xbox Live Arcade.  XBLA, if they strategically planned out their releases correctly, could be a great tool to continue feeding 360 owners with content in between major retail releases.  Before I start my rant, I have a question - are you more likely to buy an Arcade game on a week when you've got nothing pressing to play or when you've just picked up a $60 retail game that you've been waiting months for?

It seems, as we have all seen in recent weeks, that Microsoft has failed to exploit this empty period between major retail releases.  Since the turn of the new year, XBLA has been limping along week after week with very little fresh content.  This is especially disappointing after a relatively spectacular December, where we saw some great original games like Assault Heroes, Small Arms, and Roboblitz.  In the seven weeks since the new year began, we've only had one release that wasn't a retro game (Heavy Weapon) - and it was a port of a PC game that had many similarities to the superior (IMO) Assault Heroes.  We've had one "major" retail release so far this year (Lost Planet) - why hasn't Microsoft been using this dead time to take our money and blow us away with some awesome XBLA content?  I'm guessing by now many people are looking for some top shelf entertainment to spend their points on to occupy their time until "the next big thing" hits.  So what does Microsoft release to the masses?  Nothing (Jan 3).  Ms. Pacman (Jan 10).  Heavy Weapon (Jan 17) Lumines Live Packs (Jan 24).  Nothing again (Jan 31st)! Root Beer Tapper (Feb 7th).  Paperboy (Feb 14th)!?  Why are you holding back this great original content that your audience obviously (and vocally) is demanding?  They've announced some interesting top tier and original titles for the next couple months (Castlevania: SOTN, Worms, Catan, Alien Hominid, Band of Bugs, etc.) - why aren't they taking advantage of the retail game drought and giving us these?  Is the certification process really what's holding them all up?  If it is, they need to do a better job on scheduling.

Next week, the next "major" retail release hits stores - Crackdown.  With a (probable) good chunk of the 360 populace picking up and playing Crackdown, does it make sense to release a top tier XBLA game the same week?  All those people with money burning a hole in their pockets wanting something to play this week are going to be a little more discriminating with their funds next week after they've dropped $60 on Crackdown.  If I were the publisher/developer for Worms or Castlevania, I would be pissed that MS tried to put my game out the same week (or week after) a major retail release.  If I were the publisher/developer for one of those games, I would have fought tooth and nail to have my game up this week.  Now they got shunted by Paperboy.  I fully expect to pick up my copy of Crackdown, read the gaming news for the day, and see that either Worms or Castlevania will be released on February 21st.  And my brain will explode.  All I have left to say is, what are these marketing people that handle XBLA thinking?  You would think they would know something about how to maximize potential revenue.  To me, this utter and complete lack of taking advantage of a soft time in retail is mind boggling.  It's almost a case study in how not to run something like the XBLA.  Is there a flaw in my logic?  Is there something I'm missing?  If so, I'd like to know...