I'd say there's a number of reasons why: 1) The first Xbox had a marked difference in graphical capabilities and additional features like hardrive which was new at the time. Not to mention an FPS that many found ground-breaking. The 360 doesn't really have that ground breaking title yet. 2) The first Xbox had a price slash to $350 in Australia very soon after launch. The 360 is still about $600 for a premium if you buy smart. 3)The handheld market has grown in popularity taking away from sales. 4) The Wii is a far more competitive console than Gamecube was so you're finding a lot of N64 fans who switched to Xbox are now flocking back to Nintendo. Some arguments I think are a little invalid: 1) The fanbase has already bought the 360:I think Halo 3 and a significant price drop still have the opportunity to accelerate 360 sales dramatically. 2)Xbox 360's game range is too narrow: While true the console has only been out a year and I don't think I'd say the PS2's game range was very diverse after a year either. It was only much later that all this crazy non-gamer stuff came to PS2 and notably so because that stuff sells more when the console is much cheaper. Also its worth noting the game range on Wii and PS3 are much weaker than 360 due to the year's head start Microsoft had. One Microsoft release a large range of 360 classics that should aid them well.