It really is impressive to see how the Xbox 360 has risen to become number 1 in the states.
Could they lose that place even in this generation? It would be really hard but it can happen: PS3 at 199$ and Wii at 99$ next year could really make a dent on Xbox 360`s sales.

Could they lose the impact next generation? It all depends on how Wii U is seen by core gamers. If Wii U makes a great impact MS and Sony might be some trouble.

This is a well thought out post on the matter. Microsoft, by both a mix of talent and luck, landed in the same sweet spot this generation as Sony did last generation, except that Nintendo pulled out of nowhere and changed up the market. Microsoft's dominance begins as Nintendo loses their way at the tail-end of the generation, but who knows who will have the magic of correct positioning next generation?

Victory in each generation is about being in the right place at the right time. Microsoft's dominance now is due to their ability to last through the generation as the main alternative to the Wii, and as Nintendo ditches Wii support, Microsoft profits. The PS2 was released at exactly the right time and under the right conditions to make its victory inevitable

In short, what Nintendo did with the Wii and DS is unprecedented in the industry's history: winning a market through a compelling first-party library, and one wonders if Nintendo has it in them to be able to do it again, and when that variable is removed, it all becomes about positioning again, something that Sony and Microsoft are good at, Nintendo less so (at this point they will dominate or sputter based on their first-party output)

Will they? Don't know. Could they? Sure. Sony managed to after selling over 40 million PS2s there.

Nothing is safe territory in business, and there will be many other competitors from different angles so who knows. Sony might pull a recovery (seems unlikely). Nintendo might do it again (after all while the 360 is definately the more dominant console right now Wii is still ahead overall with Wii U around the corner). Then there's the fact MS getting into making the Xbox an entertainment hub is scheduled to have them competing with Apple and others aiming for the same thing.

So it's by no means a done deal and while 360 is looking good now it hasn't even, strictly speaking on a numerical basis, won US as Wii still has a bigger install base at this point in time (although I do agree 360 does look like the number 1 for the foreseeable future in the region).

lol no one knows what can happen remember microsoft still has the third console to go around and the past shows the third console isnt very friendly at all!
lets see the trends
sega-saturn 10 million
nintendo gamecube-26 million
playstation 3-50 million 3rd place
so far each time a company launched its third console it has failed to reach the expected position

so we will see , we will see , ,
and i dont like the chances next gen either
heres why
1 they are letting nintendo launch first!!!! you saw what wii did when 360 launched first! imagine what will happen when wiiu launches first this time--see 3ds vs vita right now

2 as mentioned thats already a big mistake ---giving nintendo the head start ,
but if they launch behind sony, ,, theyll be in even bigger trouble because we all know nintendo aims at different market , but sony aims at the heart! of microsofts market
so one slip up is all it takes , nintendo saw this and i believe its time they will to if ps3 dont do it this gen it could possibly be next gen that ms faces tough times

3 --- itll go down by if microsoft can get more first party titles next gen cause honestly with wii u taking 3rd party from the start, they will need first party ,, its not a matter of if its a matter of when ,
i guarantee you if wii u succeeds launch and is 400 dollars or less, - ms is in trouble , xbox live better be free next gen , cause nintendo is looking to up its game ,, and when that happens, there will be no need to pay 60 for xbox live if ps4 and wii u offer good enough services for nothing of charge

so ya if any of the 3 happen , , good bye market share

also to the person who said 360 has risen to number 1 in the states ehhh wrong 

wii is still number one over all 360 was just number one for the year! it has to go 4 more years streight at number 1    to even pass wii's us numbers 

but world wide wii will remain number one due to japan 

the xbox 360 can't lose somthing it dont got seriously and wii is still number one in the world , which is what matters most , not just one region

The N64 was Nintendo's third console, not the Gamecube, but that doesn't change the argument I guess. I kind of like the idea of equating manufacturers' third console to bands' "difficult second album" though.