Japan is Japan and 7k is a lot better than they were doing earlier this gen when 5k was a feat.
As far as others... the 360 isn't a compelling package compared to a PS3 for the same price. It's doing well in the US but i'd argue it still isn't a compelling package compared to a PS3 at the same price, but Americans are funny.
The 360 has no bundle that equals the PS3 one where they throw in a top notch blu-ray player for no extra price. For others, I think the 360 needs a price drop and/or a bundle that isn't yet another Lego game backed up by a mediocre racer that nobody would ever consider buying separately. The Halo 3+Fable 2 bundle was a great one. They should bring that back and change the arcade to current "Elite" bundle. Even if it's the same price, that feels like a way better deal than what they currently offer. I doubt Halo 3 and Fable 2 are still pulling in numbers that would make this a bad move. They could even get avoid manufacturing costs if they included the games pre-installed on the HDD (talking about the Elite of course) as a Games on Demmand game so that no disc was needed.
They need to do something... or maybe they don't. Their software sales are still strong compared to the PS3 so maybe that's all they care about. If they lose money on hardware maybe they don't care about the sales as long as they can move some set amount in each region.
