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Any argument that halo 3 was a failure is a pretty futile argument as it massively outsold halo 2, had great reviews and until recently was the most played xbl game for years.

Success can be defined in different ways, a game can be a critical success, commercial (eg it made a great return on investment, not just a slight profit) or it can flop compared to expectations. You can be successful in some ways and unsuccessful in others.