So you make a claim then you ask how we can support your claim? Ummmm then why make a claim you have no way of supporting?

GTA IV AAA title for the 360 until next AAA title for 360 Gears of War 2(November or December launch) = a 7 or 8 month wait.

 
because there aren't many good games on the PS3, what else could they have choose, they were waiting for something decent, there's a lot to choose on the 360.. and please do not tell me Fall of man, rachet and clank or uncharted.. sorry.. but they are not match..   

ps: too much 360 hate and ps3 love..  Love the game not the branD!!!!

^sour grapes.

Didn't we already have this discussion when Halo 3 came out last year?  I recall another PS3 fanboy was proclaming Halo3 is the end of 360 because there are no more good games coming out and the sale will drop.  Hmm...even if you prefer NPD numbers I think 360 got PS3 beat last fall.

Ok. Let's take a look at this so called "Beginning of the end" for the 360. I'll be looking at NA sales for this hypothetical preface to apocalypse.

First off, here's NA sales aligned from launch for the Xbox, 360 and PS3

http://vgchartz.com/hwlaunch.php?cons1=PS3&reg1=America&cons2=XB&reg2=America&cons3=X360&reg3=America&weeks=221

You may notice that the 360 is currently selling much better than it's predecessor and is currently 1.4 million above what the PS3 was at the same time. Sure the PS3 is catching up, but does that really constitute Chapter 1 of the 360's book of Revelations?

But perhaps these glimpses of destruction are derived from the 360's declining hardware numbers? Well if we look here

http://vgchartz.com/hwlaunch.php?cons1=X360&reg1=America&cons2=X360&reg2=America&cons3=X360&reg3=America&weeks=157&weekly=1

We see that the 360 is selling a fair bit more in 2008 than it was in 2007.

So if the console is seeing increased sales, greater success than it's predecessor and a substantial (if slowly declining) lead over it's HD competitor, how exactly is the ending about to begin?

Wow... just reading the OP here, but I just feel like clarifying the logic, cause people just love to play around with the numbers without actually thinking about what those numbers mean.

A highly rated game just came out. A game that makes use of enough of the power of the HD consoles that makes packing all the extra tech in there really seem worthwhile. This game has been received in much the way Melee had been for the Gamecube; It's the game that makes it worth the purchase of the console, even if you only play a couple other games irregularly.

For anyone planning on getting an HD console, but holding out, this is going to be seen as the point at which it's finally worth making the purchase.

Now lets look at the current standings; 360 has close to 12 million console in america, and PS3 roughly 5 million. With over twice as many people owning a 360 already, that means twice the number of people who don't need to get a console just to be able to play this game. It's only natural that the group with more people buying consoles would be the group that has less console already sold.

However, there is the obvious point to consider in that the 360 version has been rated consistently lower than the PS3 version, which may also be adding to the issue.

Another point is that while there's episodic content for GTA IV on the 360, there's no certainty that it couldn't make it's way to the playstation network, even if turns out to be a delayed exclusive for teh 360, and on top of that, I don't think any of that episodic content is out yet, so until that point, you're unlikely to see a surge of people getting the 260 and the game for that purpose. 

To answer the question.

Does this solidify the fact that the Xbox 360 will find itself in 3rd place at the end of the generation in terms of hardware? probably

Will developers abandon the platform any time soon? no

Most 3rd party HD games here on out will be PS360 multi-plat.

It's not certain yet.

It's likely that MGS4 and FF13 will push more people to the PS3

But its also possible that m$ will be able to hold on in terms of WW user base for a couple of years, and if so - then the difference at the end of the generation will be negligible.

As much of a cop out as this sounds, only time will tell

 What about the software?

You wouldn't buy the software if you haven't got the hardware, no?