Pretty good read.
I think 360 did well initially but is now showing signs of flagging in terms of console sales globally vs Wii and even PS3. It has a great base in US and in that territory boasts the gamers who purchase the most games, but I think it has failed to get enough lead outside US and probably never had a chance in Japan anyway.
The upshot is that globally, most of the advantages of the US lead the 360 has have been eroded. Third party developers see PS3 versions selling with similar attach rate in US and larger attach rate outside US (varies by territory but in general). It's clear going forward that apart from exclusives (or the odd blip from EA) that 360 will not get titles significanly better than the PS3 versions. Add to that the PS3 starting to rack up some good franchises with the big guns still to come and its clear that the library advantage is shrinking as it the notion of better versions.
The Wii totally caught MS off guard and I think will worry them going forward as MS is incapable of producing a console like that. They could copy, but not originate. The next Xbox will simply be a more powerful 360, which itself is only a more powerful xbox. The Wii innovated, and the PS3 took changes with BR and cost that will likely start to bear fruit during this year. Again, the 360 is left looking more like a cost effective option for playing PC style games than anything else.
Still, the SW sales are still strong and the console pretty good (RROD aside) so MS can still fight back. The bad news for MS is its going to have to badly, as the early start I think anyone could agree has not guaranteed victory as might have been hoped by MS.
Try to be reasonable... its easier than you think...
