i don't think it has failed.
1) his first party games are better than the cube counterparts and on par or better than the N64 counterparts
2) it has a huge library of really good third party niche games
3) it succesfully expanded the market
4) it introduced motion gaming that was later embraced by all console makers
it could be seen as a failure only by people who only care about big blockbuster-like games and graphic whores
and let's wait until the nostalgia effect kicks inn... just look at how higly regarded is the gamecube now, even if it was the worst nintendo console ever.
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