I wouldn't consider the PS3 a failure, even compared to the PS2 and PSX. But I don't consider the Sega Saturn a failure either. I may be in the minority on that one, but it still has games on my top 10 list. I'm sure Sony is disappointed by the sales considering they spent so much they will probably never break even with the PS3. Sony keeps throwing money at the PS3 to create killer exclusives, but with the exception of GT5 they just don't sell. Resistance 3 should be a hit, but PS3 owners aren't buying it. Even Uncharted games don't sell incredible well, not bad, but not what Sony need to dig themselves out of the whole they are in.
It's not even Sony's fault really. They did everything they did with the PS2, but this time it didn't work. The market changed and they didn't see it coming.
But the good news is we may have finally seen the market settle. Back in the Atari days there were too many consoles and the market crashed. They Nintendo and Sega split the market 50/50 until the mid 90s when Sony gobbled the market up. By the turn of the century we lost Sega and gained MS. Now it looks like it's going to be a three way market for a long long time. I have a feeling that the next generation is going to be a fairly even split between Nintendo, MS and Sony. And that's a good thing.
