It could be the fact that the market is saturated, it could just be the direct result of a really strong 2011, but Microsoft has released it's Q3 financials, and in the Jan-Mar period of 2012 it sold 1.4 million 360s globally, compared to 2.7 million last year.
This is despite the fact that the Xbox 360 remained the largest selling console in the US for the 15th month running.
Xbox 360 revenue also fell 33% to $584 million.
Microsoft appears to be blaming the relatively poor results on a 'soft market', but it's probably worth noting that there was a fair bit of fervour around the Kinect launch this time last year, which most likely accounts for last years inflated numbers.
It's probably also worth noting that Microsoft's Entertainment and Devices Division reported a 35% increase in research and development — which could be linked to work on the next Microsoft console launch — but that is, of course, simply speculation at this point.
Lifetime sales of the Xbox 360 currently sits at 67 million, which is a healthy number. The PlayStation 3 is sitting at 62 million, with the Wii at 90 million.