While I wouldn't phrase it as "the end", I think some would agree that the 360 will come last this generation.

Your confusion comes from the fact that Microsoft stuffed the retail channel for holiday '06. They somehow got retailers to purchase 2 million units that didn't sell to customers for many, many months. In the following 6 months, Microsoft admittedly shipped only 1 million units to retail. They could have shut down production for half a year and had no problems.

Retail sales don't really matter since, as you've just shown, they fluctuate due to other factors and don't really represent the actual market. We track consumer sales here, use that.

Now, a 19% year over year increase in consumer sales from the first full year to the second isn't really that great, especially when you've had a price cut and your biggest games released, but also 2006 they weren't competing against two other new systems.

MS only shipped 500k in 1st Q 07, 700k in 2Q 07.

Normally they would ship at least 1.5m each non-holiday Q.

So that means they overshipped by at least 1.8m in 06.

So subtract 1.8m from 06, and ADD 1.8m to 07 (what would have shipped in 07 if not for the overstock in 06).

So the real number is at least 7.1 in 06 versus 9.1m in 07.

Also MS has already stated they will sell more 360's in 08 than they did in 07.

There isn't really a war anymore in USA vs PS3. 360 has won, it's over. 9.0m+ 360 vs ~3.3m PS3. 360 has outsold PS3 by more since PS3 was launched in USA, than they sold before PS3 was launched.

The 360 will fail everybody knows, then MS will throw even more money into the 720 and release it 2 years early and the Wii2 will annihilate it as well. Sony will sit back in second and maybe come up with something to regain 1st next gen.

That about sums it up. Not great for MS but not necessarily terrible. They're tracking to eclipse the original Xbox by a pretty healthy margin and considering that the original was losing money like Pete Rose at a race track during this point in its life, MS can't be terribly unpleased with the 360 performance (though I doubt they're doing backflips in joy, either).

In the USA there is no fight. 360 has defeated PS3, period.

The lead grows every day for 360 over PS3, and even if PS3 started outselling 360 tomorrow, (which it wont of course quite the opposite), it would be too late. 

Jman? you really dont get where legend is coming from?

 You are really desperate to spin things in a negative way, aren't you?

wait for the xbox360 too have it's pricecut...