I feel as though Microsoft has maken a lot of headway in both PAL, and Japanese markets (Japan is still miniscule, but better), and the American market is going to bigger for MS this time as well. So yes, they are definitely heading in the right direction.
Saying that, I think that one BIG factor that is going against them this generation is the hardware failures. RRoD was (and still is to an extent) a big factor in a consumers mind to which console they will purchase. That may cause distrust in the MS video game product in the future as well.
All in all, I think that everyone except for Sony (it's hard to improve on perfection sales wise) is going to improve this generation over last. A healthy industry turn into a healthy me (and you!).







