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Some are saying they could have with Xbox One, and I reckon they might've with a bog-standard affordable console out the get go. But I still see that as less likely.
360 was their best shot. They beat Sony and Nintendo to market by a year, had Juggernauts like Halo 3, Xbox Live, multiplats, third-party exclusives and such. But let's be clear about something, a global victory in units sold would still be close. I see this as a possible end result for the units sold of the three 7th generation consoles.
Xbox 360: 92 million units
Wii: 90 million units
PS3: 80 million units
PS3 may have been the bigger direct threat, but Wii was the bigger threat overall in market share globally.
I don't think it's too crazy of a probable alternate scenario where Wii doesn't catch on 100% the level it did and even has bigger drops at the end of its life.



Lifetime Sales Predictions 

Switch: 161 million (was 73 million, then 96 million, then 113 million, then 125 million, then 144 million, then 151 million, then 156 million)

PS5: 122 million (was 105 million, then 115 million) Xbox Series X/S: 38 million (was 60 million, then 67 million, then 57 million. then 48 million. then 40 million)

Switch 2: 120 million (was 116 million)

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima