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If you are just looking at the numbers, then it really feels like they did well. But if you are looking at what they had going for them, or what they could have achieve then yes it feels like they under achieve.
At the start of the year everyone knew that with Halo coming in October and Xbox usually win the holidays season, the holiday would have belong again to MS, but PS4 would have put up a fight and not lose for the same 700k they did last year for November December. But it is not really MS that fucked, it is more like Sony step up big time. With they market share, Sony was able to secure key holidays bundle, had a price cut, actually really had a sales for Black Friday, and even gave a sales for about 2 to 3 weeks in December. Sony was aggressive and that took away sales from Xbox One.