It's just selling less than the competition. It's far from dead. It's really difficult to argue that it's dead when games like Madden keep increasing in it's relative performance against the 360.
I guess Halo and Gears are forces to be reckoned with in the US and will be for a long time. For me, it's all the 3rd party exclusives like Yakuza, Valkyria, and Rorona that make the lineup for the PS3 that much better.
"Naturally the common people don't want war: Neither in Russia, nor in England, nor for that matter in Germany. That is understood. But, after all, IT IS THE LEADERS of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is TELL THEM THEY ARE BEING ATTACKED, and denounce the peacemakers for lack of patriotism and exposing the country to danger. IT WORKS THE SAME IN ANY COUNTRY." --Hermann Goering, leading Nazi party member, at the Nuremberg War Crime Trials
Conservatives: Pushing for a small enough government to be a guest in your living room, or even better - your uterus.