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When compared to other PS3 first party exclusives it is doing good:

http://vgchartz.com/swlaunch.php?reg1=All&game1=Killzone+2+-+PS3®2=All&game2=Uncharted%3A+Drakes+Fortune+-+PS3®3=All&game3=Resistance+2+-+PS3&weeks=60

When compared to multi-platform AAAs it stinks:

http://vgchartz.com/swlaunch.php?reg1=All&game1=Killzone+2+-+PS3®2=All&game2=Call+of+Duty%3A+World+at+War+-+PS3®3=All&game3=Grand+Theft+Auto+IV+-+PS3&weeks=60

Its all about perspective... If you are comparing it to other Sony exclusive first party stuff, life is good, if you are comparing it with multi-platform AAA games, sales were brutal.