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Of course it's not a failure to be number two, or even number three, but it sure seems like failure to have excess stock 5 months after launch, to need to give away for free a game you heavily invested in, to practically be DOA in half the countries you launched in, with barely a chance to even make a dent in all others you still haven't launched in. XOne's failure has just begun, but reality will set in when their only two exclusive old tiring franchises also fail to shift consoles barring a massive pricecut/free game combo.
Microsoft will be lucky if it manages to reach original XBox's sales, making this their last console ever.