Seems in line with what you would expect at the end of the console generation.
I would agree if Scarlett were releasing this year. Since it's releasing next year, Microsoft is mostly out of the console business until late 2020.
Yeah, that's my thought too, I can see this being "normal" if Scarlet was releasing this holiday season, but it's still a year and a half away.
That's a long arse time when weekly sales have already dropped to 40k. They won't so much be limping over the finish line as crawling over it.
Still, as transitions like Wii U to Switch, Gamecube to Wii, and Xbox to 360 prove, it's entirely possible to go from a failed console to a successful one. That said, it's going to be an uphill battle convincing gamers that Scarlet is a good investment. I wish them luck; competition is good for the consumer.