Why yes it is. But 360 would still be selling in the forseable future (its still $299 for the "good" SKU lol). Itll support the 10 year plan no problem.
Of course it will, but in general gaming has hit a dry point right now. The Last of Us is the last disc based PS3 game I'm probably going to buy. I'm not even too sure if Microsoft has first party games in the pipeline(Disc based). Whatever isn't getting shown off (3rd party and first party titles for both manufacturers) right now is most likely "next gen" games... E3 can't come soon enough!