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The 360 is in trouble if MS simply sits on the situation and does continue to try and improve sales. I doubt this will happen.

Trying to predict future sales of a product by looking at a 2-3 month window of sales is fraught with peril.

Now, if the PS3 and Wii were already established and the 360 had just been out 1 year, then I would really worry that the platform wasn't viable for the long haul. That, however, isn't the situation. My guess is that the buying habits are affected by the length of time and season in ways that make it difficult to understand where things are ultimately headed.