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Completely depends who is looking at it.

They as a company, and industry analysts, will see it as a failure because of the huge loss they made by selling it.

We as consumers can see it as a mild success because it has caught up to its closest competitor (in terms of HD consoles) with a year's less time selling. And it's produced some pretty damn good experiences, for me at least!

As long as Sony don't go into the next generation trying to make an all-in-one does everything console which is ridiculously priced (as they did with the PS3) then I think they'll be alright.