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Overall, no, not a failure (its already doubled Wii U sales). However, with the fact that they were neck and neck with PS3, even with the RROD issues, the fact that they ended up so far behind PS4 was unexpected.
The reason why they ended up so far behind was clear the day XB1 was revealed, but who could have predicted that entire mess, after the 360's success and before the XB1 announcements, is beyond me.
They have done a decent job recovering, but trying to fight PS when they are on their game, has been a losing battle so far, no matter who you are.
To make matters worse, Switch looks to be rather promising as of now, and having to fight a "reborn" NiN and PS, will be like trying to climb Everest without a guide(NiN), nor oxygen(PS).