Not a failure but it's not a major success like the PS2 either, and if Sony stand still doing nothing for it including not reducing price at a huge cost, the sales today would look similar to the N64. So yeah it was nothing mindblowing but could have been a lot worse.
And if XOne was still at $499 with the only Kinect Bundle available, it would have ended like Sega Dreamcast. But, we know we can't make history with 'IF'.
PS3 had a lot more competition from MS and Nintendo compared to PS2; XBox and GC offered a really weak competition, and PS2 was released before both rivals, getting immediately more 3rd party support. On the other hand, PS3 was released 1 full year after X360 in NA and Jap, and 16 months later in Europe, at a very expensive price. Of course it couldn't do as PS2= Sony big mistake ---> Lesson learnt ---> PS4 ---> Domination.
To be noted : PS3 sold better than 360 every year apart from 2008 ! PS3 won 2007-2009-2010-2011-2012-2013-2014 ! 360 only won 2008 ;)
”Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience, and the passion to reach for the stars to change the world.”