Who was it last month that was saying 360 wasn't in shortage, then I posted links to it being sold out on like 4 different retailer websites and they never posted in the thread again? Calcifer, ToxicAdam, and abrader I think.
Anywho, if 360 wasn't in shortage last month it wouldn't have closed the gap so much as supply improved in February. I don't know how anyone paying attention to the sales throughout 2007, particularly in the last few months of it, could think that January was anything but an anomaly.
"If people are buying your videogame system to watch movies, that should be a red flag for your business."
not when you can make more money than both competitors combined on your movie format if it takes off lol
and why is ms bragging that they can't keep a machine that isnt in demand, in stock? 
Not if you want third parties to take you seriously.
If it wasn't in demand it wouldn't be out of stock fagbutt.