Didn't they have like 600k in the channel back at the end of the last quarter? If June can keep up the pace of 700k/month this quarter and MS ships enough to have decent stock in the channel (~1m sounds reasonable), it appears easily possible. I mean, they may not even need to overship much if they can get something exciting for the summer allowing them to deliver stock to be sold in the next quarter.
360's actually been unbelievably impressive given Kinect's collapse coming into this quarter.

Using different words, we quite agree, except on Kinect that I see in a more complicated, but not worse, situation. Yes, it collapsed in the rest of the world, but it still sells well in USA, often outselling Balance Board, and anyway selling enough to still rank quite close to it WW, although always behind it after the initial astonishing sales. I guess MS studied it very well, but it committed the error to do its research too US-centric. As they are games that define a platform and a peripheral the most, MS can adjust its route, but by now the games that are already released or are near completion can't be corrected anymore, only those that were in their early development stages when MS acknowledged its mistakes can be adjusted, so we'll see the effects on games and sales outside of USA quite later, if it isn't too late. But will MS adjust its route at all? Up until now it looks like it's quite happy that XB360 is so USA-UK-centric, will it change its strategy for Kinect?

Not going to happen unless something dramatic happens at E3 (like MS cutting price and Sony not)

As chances exist, but they aren't high, and MS wants success stories for its products, Ballmer just decided yesterday that they'll strike a deal with a specialized firm to try and outsheep it instead.

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