Either I'm an old fogey or Microsoft should seriously consider hiring a new ad agency. Check out these Xbox 360 commercials (big bandwidth warning): Jump Rope and Water Balloons. Of course, they're building off a base of Xbox ads like Life's Short. I doubt I'm in the Xbox target demographic, but these make me wonder about those who are.
Update: A reader points me to two more that have a higher amusement content: Uncle Randy and German Plane Race.