Success/Failure is, in all respect, overly subjective.
Based on Nintendo's current business model (and probably their expectations), Wii is a complete success. In terms of gaming, Wii attracted the audience they intended to attract which generated large returns financially, expanded the gaming by attracting far more casuals than before, and disrupted the gaming industry from its monotony of all-powerful multimedia consoles.
What Nintendo failed to do, on the other hand, is respond to Sony's Move and Microsoft's Kinect; Regardless of their reasoning, may it be saturation or capitalizing on the motion market, they at least tried to cater to a market outside their scope. Nintendo instead tried to convince the gaming industry that Wii owners don't need HD (which in itself is arguable); and to top it all off, it seemed to me that this last year and a half, they practically abandoned Wii and focused on 3DS and Wii U instead (which could be a good thing).
In my honest observation, overall, Wii is a success for all of its intents and purposes.
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