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A failure at what?

A gaming machine? I draw the line between consoles that succeeded and failed between the Dreamcast and the Gamecube. The PS3 looks like it's going to hit at least 30M, so it's ok in this regard. Sony first party games have improved enough, and there are so many exclusives still in production, that it'll definitely end up as a console worth owning.

As a successor to the PS2? Absolutely. Sony took their winning formula that worked well with the PS1+2, and completely tore it apart. A hundred years from now, people are going to look back at the transition from the PS2 to PS3 for hints on what not to do.

As a way to push Blu-ray? Too early to tell, but looks like it's working pretty well.