Step 1: Analyze the recurrence.
The recurrence relation is:
\[
x_{n+1} = \left( \frac{1}{2} + \frac{\sin^2 n}{n} \right) x_n.
\]
As \( n \to \infty \), the term \( \frac{\sin^2 n}{n} \to 0 \), so the recurrence behaves asymptotically like:
\[
x_{n+1} \approx \frac{1}{2} x_n.
\]
This suggests that \( x_n \) decays exponentially.
Step 2: Check the convergence of the series.
Since \( x_n \) decays exponentially, the series \( \sum_{n=1}^{\infty} x_n \) converges, as it rapidly approaches zero.
Final Answer:
\[
\boxed{\sum_{n=1}^{\infty} x_n \text{ converges.}}
\]