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I think that sucess or failure has nothing to do with hard sales numbers but rather with profit. Did the division turn a profit? That is what is ultimately important.

 

There is also the progression pov. Did the division profits or losses rise or diminish? I don't have the data but i think it's clear the 360 made more of a profit. In that sense, it can be interpreted as a partial failure.

 

This is all very abstract though. Sucess is dictated by tracing objectives and seeing if you met them or not. Only Microsoft knows what those were.