Has Microsoft already achieved its goal?

[Reasonable]

I'd say no overall. Why? Because while they certainly hurt Sony (in US and to a lesser extend Europe) all they really did was make it easier for Nintendo to zoom back into first place, and in the process consign themselves to a losing position also (no way is 360 going to be lead console this generation).

Also, I think MS has painted itself into a corner with 360 (although that might be intentional depending upon what their true goals are). Why? They have simply consolidated what they started (far more imperfectly) with the Xbox, which is to be the console of choice for US gamers (and to a lesser extent UK and other English speaking nations) in preference to PC gaming for FPS/online MP gaming.

Now this is a very lucrative market (that demographic will probably spend more on games / other stuff than any other gaming demographic) - but in satisfying it they are denying themselves any chance I think of being seen as the choice PS2 and Wii offered.

Unless MS changes tack and comes out with a lower cost console next gen (comparitive in jump in spec from Xbox to 360) and turns away from offering high end graphics and online MP as its core competancy I doubt that next gen MS will have any more chance of getting near PS2 numbers (and whatever Wii finally ends up with) than they had this gen.

They are making some profit, they are in a good position in US for next gen for hardcore demographic for shooters and will outperform what they achieved with Xbox - so I'm not saying total failure by any means. In fact going forward I could see MS deciding to settle for that market worldwide - balance power with price and strong shooters / online and dominate that market. This would mean however that the far larger more casual console market would always be up for grabs by either Sony or Nintendo and out of their reach.

So did they achieve what I think were their overall goals? No. Have they given themselves a change to be number 1 next gen? No, not unless they steal ideas from Nintendo and Nintendo fail to deliver next gen - but I doubt that's going to happen.

Have they found a strong market they could exploit? Yes. Are they profitable? Yes.

My view anyway. Oh, and I bet Sony are rueing letting MS drag them into an effective arms race leaving the door wide open for Nintendo - although the combined profits from gaming and BR may soften the blow, and I guess they did want to use PS3 to Trojan horse so MS can't take all the blame!