Microsoft, makers of the Xbox gaming system and the super-popular Halo franchise, introduced a new strategy this week at the annual E3 convention aimed at broadening its appeal to mainstream consumers who don't think of themselves as gamers.

Rivals Sony and Nintendo announced new games and services at the conference, but failed to wow critics with their revised consumer strategies. Sony, however, began offering a video-downloading service on July 15, and announced that it will cut the price ...