I guess if you look at a situation in the short term then yes, the X1 is not running to what MS expected or even the industry. The key is the short term. MS made short term decisions that increased the sales of their product. Cutting Kinect, cutting the price and during the holidays bundling games helped the X1 gained momentum and pretty much overturned a lot of the negative view the X1 had when it was release.
So MS bit the bullet and did what they needed to do to move the X1 consoles. Only time will tell if those decisions has lasting effects. If anything you have to give it to MS to not put their heads in the sand and hope for a better tomorrow. It really seem like they are pushing the stick forward because they have no choice. If anything it will be more interesting to see if Sony get lax then MS gain momentum.
Anyway to answer the question of the OP, Its way to soon I believe to judge success or failure for the X1. Its only just year one and thus far MS has done what was needed to change the fortune of the X1. Its usually by year 3 when you know if a product is successful or not. The X1 does not have to be number 1 to be successful ( That is for Fanboys to argue about) instead the X1 needs to be profitable, continue to gain a nice marketshare and accomplish the goals set by MS for the product.
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