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I don't think they are considered a failure right now. I mean how could they be with Microsoft pumping so many resources into them for so many years. I would say though that they probably won't be pushing out 2 AAA titles at a time anymore. They were almost as big as Nintendo was at producing games. In fact, I think they defined the N64 better than even Nintendo did, and I don't think that anybody can deny that at the time MS bought them, they were going through a HUGE rough spot.  I mean, look at it this way, would you see Rare being thought of as ever being anywhere close to "defining" an Xbox console?  They just aren't that strong anymore.  Not many of the greats are anymore.