The Xbox is selling far better in 2008 than it did in 2007.

The console isn't doing amazing numbers but MS is now profiting from their games division and I doubt that will change any time soon. It's not all doom and gloom for MS.

360 has a fantastic library and many more to come. So no, 360 is not in trouble at all. Still has a big lead on PS3, and all of the PS3 owners are waiting around for Final Fantasy and MGS4.

Capitalizing on HW = making a profit out of hardware sales. Current Xbox360 sold are not making a profit on hardware or not anything significant at least...( and if they are expected price cut sometime this year will cancel it).

I don't think the Xbox ever reached that point.

The PS2 took a long time to get there ( because initially every cost reduction was followed by a price cut) but it got there eventually.

The Wii has been there since the beginning.

The PS3 probably won't be there before early 2010 or so, the 360 probably would be there around the same time except I doubt it still will be selling many units by that time....

To answer the original thread yes I think the 360 is starting to be in trouble.
2008 should be an amazing year for the 360 but it will be reminded as the year where it started to be outsold in every territory by its two competitors.
It will be the year where Sony will pass them significantly in Others too.

Big issue is as good a year as it is, it really feels like an end of reign year as there is close to 0 visibility on future games coming to the platform after 2008, frankly the 360 has a very good game libray but the feeling I have is that most of the kick ass games are out or will be this year and there aren't a lot of expectations for the next years and as time pass this will become a factor in buyer's decision...

Basically Microsoft tried to go for the early knock out this generation and almost got it but it failed in the end and now it doesn't have the stamina to go for a 12 rounds fight...

good analysis misterd
and certainly some good achievements by Microsoft

but I do think that you overstress the importantness of the North American market


the PS3 came out in march 2007 out in Others
versus the 360 in may 2005
and is cathing up the 360's total there


in NA, the PS3 is equelling the 360 in it's second year versus the 360 in it's third year


for Japan, it would be shocking if at some moment, december or begin 2009,
the market still wouldn't fall for the PS3


with the Others being or becoming the largest market, and revenue-wise easily the most important

and the PS3 still doing good in North America

the PS2 also still doing great

then the trap might be set for Microsoft if they would release their next Xbox somewhere in fall 2010,
against a PS3 at the end of it's forth year in NA
and 3,5 years out in Others


remember
the Xbox released in the PSX's 7/8th year
and 1 after the PS2

but then they launched the 360 all of a sudden 1 year before the PS3 in NA
and even two years before in Europe!

so if they continue the same pattern of sypporting the their Xbox 360 4 to 5 years
they will launch the next Xbox 2 to 3 years before the PS4

and that's taking on the Playstation heads on in the years it should be on it's strongest, with a PS4 for 2012


that looks like a great finale battle
after which one might bail out, or markets might get diveded

they are in trouble. after the gta iv effect has worn away (which will benefit the ps3 greatley), they still have to compete with another system seller which is mgs4. they have fable 2 but come on now, thats not a system seller.

sony will win the battle of gta iv. i dont care what you say, ps2 owners WILL upgrade to a ps3 at that time. gta is a sony game, and most people that play gta iv dont give a fuck about dlc. hell, no one i know even knew that 360 was getting dlc and they are hardcore gears of war playing 360 owners. the yall own a ps2 and some r getting a ps3 for gta iv. the ps3/gta iv bundle says it all. just look at this http://www.gameplayer.com.au/Home/NEWS/NEWS/tabid/1482/Default.aspx?CID=cc15aa90-e533-470a-a6ac-f0e47946bc45

then when ms finally takes a breath they have littlebig planet to worry about, whcih will attract A LTO of casual gamers.. they could counter that with their new motion controller lulz. also consumers will be looking for a blu ray player and christmas time, which a ps3 is perfect for according to madskillz

then comes resistance 2 which is a system seller. ms have gears 2 thats it. gears 2 will be their big game through early 2009, and it will have to compete with gt5, final fantasy, god of war 3, and the new jak game. mass effect 2 and boishock 2 are jokes compared to that game and mite come to ps3 anyways.

so yes ms are in trouble. the games they have to counter the ps3 games are jokes. 360 has no exciting exclusives left for 09 and a very slim and unimpressive one for 2008 compared to ps3's. microsoft seems to bunch all of its exlusives in at one time, then rely on multi platform games, then dump the whole console compltely, then again trys to go after the hardcore market. however sony knows what its audience needs. they have a veriety of games

killzone 2, resistance 2- shooters hardcore

LBP- casual

gt5 motorstorm f1- racing

final fantasy, wnk, disegea -rpg's

and dont forgot blu ray

microsft could attarct the casual market wit their little wii rip off controller, but that will phail epcially. 

Meh,I´ve always viewed Playstation and Nintendo consoles not as competitors,but as complementary...since the 5th gen,they´ve always complemented each other nicely,at least IMO.

Not counting the cost of repairs, which were back-charged so they wouldn't affect the current bottom line.  Microsoft did this, of course, so they could show a profitable year on paper (despite it not actually being profitable).

Plus, having a single profitable year when you're 6.5 billion in debt with the project might be a big deal because it's their first profitable year, but it doesn't show that they're going to actually have a profit to show for the entertainment division anytime soon. It just shows that it is possible to eventually generate a profit, assuming they can get profits to be larger then the cost of establishing a console.

rocketpig

ms arnt profiting from the 360. all that cash is going towards the RROD.