360 isn't dead in the least. It has a very very very healthy lineup of games that will boost sales, and garner new players. I'm not saying this from a fanboy standpoint, but it has the software to survive and go against the Wii and PS3.
The 360 last year in Japan out-sold any and every year the Xbox 1 had in Japan. Yes, 196,000 units is horrible, but it's actually about 50,000 units better than any other year that MS ever had there. This year will be even bigger with more important titles like Lost Odyssey coming out earlier in the year. Will LO really impact Japan? Yes, absolutely. It won't make a big difference on worldwide numbers, but it'll hugely help MS in Japan.
Thus far, year over year in Japan - The 360 is doing 146% better than last year:
Of course, even though thats a huge improvement, it's still nothing compared to the PS3/Wii, but it shows that the 360 IMPROVED when the next-gen systems came out.
In America, it is similar, but we only have 3 months to compare data (Nov-Jan), but the 360 is up 140% in the US. Although this will absolutely go down in percentage through the year, thus far the 360 is a huge 1.1 MILLION units ahead in the US over launch last year. Again, the 360 has improved month-over-month over launch vs. it's next-gen compeditors. The PS3 has not led the 360 since it's launch. The Wii has only led 1 month, and is still about 600,000 units behind the 360 if you leave out 360 launch data, and just go from last November.
Software is a similar story - The 360 actually still leads the Wii/PS3 in software, both with launch data between all 3 systems, and is far far ahead in the US if you compare this Nov-Jan, respectively. The 360 has sold around 10,000,000 pieces of software in that timeframe, with an estimated 5.2 software attach ratio (its actually higher than that, but that's what VGcharts has it at) compared to a 3.4 for the Wii (including the free Wii Sports) and 2.1 for the PS3. Even at launch. This number is even better than the Wii/PS3 at their launches, or in January, as the 360 had a 3.9 ratio at this time last year (without a free pack-in title that was counted)
So all of this to make it short & sweet: The 360 is doing better than it was now the Wii and PS3 are out. In the US, it is beating both systems, and will easily lead both systems in the US through December, and possibly forever. Barring a major shift in the summer months (ie, PS3/Wii continue to sell at great rates and 360 sells worse), the 360 should lead for life in the US, as it has the advantage of a price drop quicker/easier than either system. It should be noted that Nintendo could drop their price easily as well, but a price drop for both would work in MS's favor better as it'd get the price to the golden number, whereas the Wii is already there.
Europe, who knows. From what I've seen, it's doing almost as good YOY over it's launch. Lost Planet was #1 in the s/w charts in January in some, if not most, areas. Most likely the PS3 will beat it out at some point, but it still is doing better.
Food for though: The Xbox 360 from launch to October 2006 sold around 6.0~6.5m units. Since November, it has sold 50% of that and climbing. It has 8 more months to improve on that number. By that number, I expect approx. 8-9m units sold this year cycle, with an even bigger improvement in the year 3 cycle due to full implements of a pricedrop + major titles like Halo 3 and GTAIV.
Back from the dead, I'm afraid.
