Funnily enough I think that the recent Live downtime is probably more what you could class 'in trouble' than anything else.
360 is doing okay - although I don't think they made enough of their head start over Sony and Nintendo, nor do I think they are selling to a broad enough demographic, and yes sales are too skewed to US.
Does that mean its it trouble right now? No. If left unchecked could those factors start to hurt from mid 2008 onwards? Maybe.
There is one way 360 is in trouble, and it's the same way Sony is in trouble... and its that right now Nintendo are so far ahead as to be almost unbelievable - they have the fastest selling console which will soon (looking at trends) be wracking up the most software sales, they have best selling handheld with best selling software, they are profitable, they have best price point and they are selling to the broadest audience.
So yes, if you factor in Nintendo's success in last 12 months and winning of holiday period sales, 360 is in trouble... if MS hoped to have a chance of finishing with best selling console this generation, cause that hope is IMO squashed already.







