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Success:
Nintendo first party
Sony first party
Nintendo hardware reliability
Microsoft Online Play (which allowed sony to improve as well)
Smaller companies shine (Level 5, Platinum games, others.)
Multiplayer Online
Sega later generation (early on they really were doing horrible....SONIC HD....)

Failure:
Destruction of microsofts first party (Ensemble, etc.)
Microsoft RROD on early models
Sony YLOD on early models
Paid DLC namely from Capcom, Namco
Capcom Company
Sega Early Generation
Namco lack of translations for key titles
Multiplayer Split Screen

I could go on but I need to get back to class.