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MS isn't in trouble.  The 360 has almost certainly exceeded their expectations for this gen, it is the second place console in US and the first place HD console in US, and it is profitable and Live is doing very well.

The 360 has to dip given its age and relative lack of new IP.  Kinect gave it a great boost but IMHO will not give it a truly sustained boost as I think the Wii remains simply too dominant for motion controls, so I think it will start to dip again.

But... there will be more Kinect titles, more price cuts.  360 will achieve a great LTD performance when its run is over, partiicularly if you compare it to the Xbox.

So no, MS isn't in trouble - unless you believe there's some magic way to avoid normal demand curves and keep a device on an ever upwards growth there's nothing actually wrong with 360 sales given its age, library and typical slowing of new IP vs sequels that keeps the core happy but contributes to slowing sales momentum.



Try to be reasonable... its easier than you think...