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I'm not sure if you should call it MS in trouble but 360 is definately on it's way out as with wii, this is the advantage Sony had in mind when they made the ps3 so freaking expensive, more cutting edge tech=longer life, ps3 hasn't hit it's peak year yet, games keep improving on it, it's install base has surpassed the 360s and is far healthier then the wiis, ps3 is getting more third party exclusives now then ever, and less devs are doing sloppy ports, so yeah I don't really think MS is in trouble except for the fact that the 360 is almost done and they are in a weak position to launch a console (no first party, hardware issues from last gen, charging for online unappealing, if they make one now difference between consoles won't be that big atleast not at a decent price)