In terms of sales they are not, since I understand they are still outselling the xbox 360. But in terms of profit while they are still no doubt making a profit every year, their profits are much lower than with the x360. So in this regard they are a failure.
I have no doubt that Ms considers itva failure. The X360 was much more dominant and revolutionary in its era. Still I am sure the xbox is profitable enough for Ms to make another xbox for the next gen.
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