Yes, it is a failure up to this point and there's so much more evidence pointing toward this than not; what's more, we've begun to see a transition into PC gaming recently which means they may very well be planning to leave the console space for good. If things were as rosy as many of you want to believe, they would not be acting like this.
Sales:
Japan - massive failure.
Europe - bad failure.
China/3rd world - eh. These countries are still in their infancy. Couldn't expect much anyway.
NA/UK - this is without a doubt the only countries that you couldn't consider them a failure. Both countries almost retain 50% of the market. Not bad.
Microsoft: if they themselves did not forecast far higher sales, we would not see the kind of antics they've pulled. We have had massive deals early into the gen from them. They've stripped everything from the original vision and completely revoked previous policies. They no lounger mention sales numbers. We still have bundles that are months old that have not been sold through yet. They over shipped millions christmas quarter to deplete excess stock for the next batch. So far their actions have very clearly reflected an unexpected failure this gen.
One of the best and only defenses people around here have is that this console is tracking ahead of its predecessor at the same point in time. What they don't mention - 360 had supply constraints; X1 had a fantastic launch that wouldn't be representative of the next year and a half of sales; the console is $150 cheaper than launch within a year and a half; market research has suggested a decent chunk of previous 360 owners have switched platforms; and finally, they've entirely lost all momentum they had in market share in their strongest territory and have reversed roles in said market.
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