Why the Xbox 360 isn’t doomed

James at GigaOm has written a post today in which he predicts that Microsoft’s Xbox is doomed, mainly as a result of the Wii’s success and the various ‘red ring of death’ issues which have affected many of the consoles.

However, eConsultancy thinks that James is being a little hasty in his judgement, and is not seeing the bigger picture.

While the failure rate of Xbox consoles – as much as 33% by some estimates – is hardly a great advert for the Xbox, it hasn’t been enough to dent the console’s popularity beyond repair, and Microsoft has built up an enviable position, both in terms of market share and in securing an installed base of millions for future multmedia plays.