Lol no one cares about rrod. It sucked for the first year of 360 buyers, they all got new consoles and that was basically that.

Xbox 360 was fairly dominant compared to the PS3 everywhere but Japan, and it's a testament to the failure of Xbox leadership at the time how much the One launch flipped the tables.

Launching an always online, living room webcam / microphone in the wake of the Edward Snowden revelations was wildly bad timing, on top of a lot of poor decisions to focus too much on tv and entertainment instead of gaming and you ended up with a gamer revolt. Then you had the utterly absurd failed launch of their core franchise on the console, which just hammered home their lack of focus on gaming, and it was never going to recover.