Why do people say that a console fails if its in third place?

[Delusional]

i dont think the console failed.  but more like maybe a 'business strategy' failed.  for example, ps3 was priced so high and sony thought the ps2 userbase would definitely buy it even if it was 600.  they expected sales to be high and to help win the format war, they bundled the console with bluray.  that way, they expected to win bluray and the next gen wars. but they miscalculated the reaction of the consumers assuming all are willing to dishout 600+.  that's why it's the 'strategy' that failed if it doesn't meet their objective.  but it can't be said that a console failed, unless the release of the console was to bring a company back from bankrupcy, but instead sped up the process for chapter 11.  then i would say the console failed the company.