I'm not going to say one way or the other cause the thread is much like the 'is the ps3 a failure thread.' I do think the 360 is in trouble because I can't see it winning in any region except the US. Even there (here), they'd still be beaten out by the wii.
On the whole, 07 was a very strong year for 360 software and very medicore for the ps3. Despite this (and the fact that the ps3 didn't drop it's primary sku to $500 till september), hardware sales were neck and neck the entire year. Do I think the 360 is dead? No. But with the market flooded with fps games, it will take something more then halo to keep it in line with the ps3.