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.