If 360 is in "really, really awful shape", than what is PS3 since 360 outsold it 2-1?
Really, really, really, really awful shape?
360 is in great shape. Really the best shape of anybody this gen. The only real competition to 360 is PS3. Wii is totally irrelevant to sales of those consoles.
So 360 has the games, the power, the price, the ability to drop price easily and on top of that outsold it's competition 2-1. People hate MS so they're going to try to paint a gloomy picture but it's actually no worry at all. It's not like anybody's going anywhere for about 7 years in this generation (this generation will be longer).
There's only one question left, which is if 360 will eventually overtake the Wii or not (and if it matters). That's it. Only question left. 360 has all the software support, and WILL be a thriving profitable business for MS for the next 5-7 years, no matter if Wii sells ten billion.
