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It had a packed release date for a generally multiplayer console. Red Dead Redemption, Prince of Persia, etc. all launched on the same day as Alan Wake. Alan Wake is a new single player IP so it had a bit set against it.

However, I think the game will have big legs. If you look at a game like Uncharted which only sold 133,078 in its first week, it went on to sell 3 million+ copies. This is mainly due to word of mouth. Yes of course the userbase was much smaller then, but you get my point. Both were new single player IPs with similar graphics to show off.

I think the game will be alright and for a game that is going to sell around 300,000 its first week isn't that bad. Especially for a game like that on the 360.