I feel like there needs to be some perspective here. It would mean they couldn't plausibly win the generation, but the overall stats for XBO still paint it as a very healthy console on track to outsell the X360 worldwide. I don't think "fucked" would be a fair way to describe the situation they're in, except in the very narrow sense that their ability to come first place would be torpedoed. PS4 and XBO are both seemingly filling the void left by the WiiU's total failure to follow-up on the Wii's success. 
I thought Sony GAF of all people should be used to explaining how the PSP wasn't an overall failure just because the DS was a mega-success.
( ͡°╭͜ʖ╮͡° )