ms isn't dead, that is a fact, no 2 ways about it. but ask yourself, where would the 360 be if it was released the same time or after the ps3/wii? yes, dead.
i don't however, think it would be wrong to say that although the 360 is selling better than last year, with it's library of holiday busting games...the best of '07, and the best online serivce out of the 3, and the best value for money, it SHOULD be selling alot more. it's not, and that is a mystery.
a machine with double the price and half the games is just about beating it, and a console with double the shovelware and half the size is beating it.