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I think it should still be considered a failure. Why? Because, the 360 was not readily in stock until late March. Whereas the PS3 has been readily available in January for NA and Japan; and seems to be already fully in stock levels in EU. Also, you are talking about a machine, xbox, that had 1/5th the userbase of the ps2. Based on Sony's existing userbase they should be much higher right now. The ps2 has also been out for twice as long as the xbox. That means, more existing ps2 users should be ready to upgrade than the existing xbox users. ps3 has only sold about 2-3% of the ps2 userbase, whereas the xbox converted about 10% in the same time frame. I don't think the ps3 will match the 360's first year sales, and that must be considered a failure, at least up to that point. PS3 should still be sold out. Maybe the price is just too much to swallow and is having too large of a negative effect. I guess we shall see this holiday season.