Supply constrain or not it sold more comparing to the last week, did it not? How's that "a failure"? It was time for Sony to get paid for the BR risk, and if this paycheck is a few thousands PS3, that's fine with me. These PS3s are BLU RAY PLAYER. These 360s are GAMING CONSOLES. Simple as that.
All Microsoft has to do is finally drop the price and Dominata the GTAIV sales (it will...)
(everyone's sayin' that eh? Ah... nevermind, its common sense)

the 360 is in trouble, but it has so many great games coming, it has one more year left before the end.

They wrote off about 1 billion dollars. They expected that to be enough to last the entire generation. Whether that is the case remains to be seen, but it's definitely enough for at least 2008. They wouldn't have underestimated the failures that badly. After all, they had 1 1/2 years of info when they upped the warranty and they know the true numbers better than anyone.

How can it be over for 360?

Between Jan 5, 2007 and Feb 16, 2007 it sold 681,614 units
Between Jan 4, 2008 and Feb 15, 2008 it sold 749,062 units

Net increase of 67,948 units...

How can a year over year increase in sales by almost 10% be game over?

Is 360 doing bad, or is PS3 doing good and 360 is still doing good?

Damn, well I guess this generations been over for the PS3 for about a year now. No reason to buy a system that isn't number 1.

360 is dead! dont buy it! but wait a price drop across the board. and a few exclusives and MS continues to sell for 2 more years to 30 Million units worldwide!
Then dead MS who is broke introduces the new light years ahead xbox with 4 core cpu running at 4 ghz, blu ray dvd and and an ATI nexgen Chip running at 1000 mhz and 256 pixel piplines crushing the graphics barrier for all consoles to come for the next 3 years ! til in 2012 the PS4 Is introduced with metal gear slug as its top franchise!

That was pure speculation not fact, if it comes to past call me Carnack! LOL

rocketpig: I expressely have stated that because of the Red Ring Issue, I will not buy a 360 until it is fixed satisfactorily. (Or in RPG thread Bof 6 comes out for it)

Most consumers may not be like me, but some are. Others are more strict, others more forgiving etc. But even with the billion dollar fiscal 2006 expense, it still HAS COST SALES. The degree is the issue of fanboyism, the problem is still real.

360 is 7 million ahead in america in sales it will take the PS3 at least 2 years to catch it if can!

I don't care about what sells what. I care about games. If outselling the 360 does not translate into great games, why care? The 360 has some great games coming out for it, and unless the PS3 can offer better due to higher sells, I really don't care. Just look at the Nintendo Wii. Would you trade the PS3's vastly superior current library and it's way better lineup just to get those sells that the Wii gets? I would hope not, because the Wii's success has lead to an amazing game library. 

(Note: I apologize to Wii fans for using it as an example.)