360 is doing fine. It is easily outselling the previous XBox and has gotten complete 3rd party support. There are very few third party games that don't ship on 360. To date, it is less then 10.
As for HD content, I don't know if many people associate a gaming console with movies as much as people that visit these sites do. And the success of the Wii shows that as it can't play movies at all yet. What will happen to PS3 when blu-ray players are readily available and significantly cheaper then a PS3? Most people don't play games on their TV. Out of the 7 Billion people on the planet only a few hundred million own a console of any sort (never mind play it).
Gaming consoles come down to games, and 360 has the games and continues to have support from its user base buying those games. In the end, if I am a publisher that's really all I care about to make a game for the platform. Will it sell well? The answer is "Yes" on 360 so publishers will continue to support it.
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