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Sure it is.  It's in third place week after week (Even when the 360 has no compelling exclusive software coming out for it either).  It's third party software support remains non-existent with no first party big hitters to speak of for a long time.  It doesn't have a truly viable online setup.  Every console has some motion control viability (So what's the point of the Wii at this point?)

It still will likely keep it's crown when this generations consoles are all off the market but it's certainly limping to the finish line.

It probably will still sell the best around Holiday time due to pricing, name recognition, etc.  But year round it will get pushed around by the HD consoles.