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Yes it is a failure under initial expectations, but if you think that Sony is still expecting to sweep this generation then you're wrong. Once you find that you aren't going to sweep the generation your expectations change, as they should. Putting the failure and success lines where you have put them will always put the last winner in a precarious situation, and specifically put Sony at a huge disadvantage this generation due to the amazing success of the last.

In conclusion, your measure of success is one way to look at it, but I disagree.