Only one thing has come to mind that wasn't a success to me as a rather big 360/MS fanboy (making the recent pledge that the PSP will be most likely my last Sony product.) - reliability.

I don't mind sinking in $35 a year for Live (that's what I've paid pretty much every year, or less, thanks to online card deals). I am a bit peeved to spend so much on the hardware itself. I've had two controllers go crappy on me since launch, and will probably be getting 360 #3 in the future. First 360 lasted near 4 years but got the RROD. I then sold the re-furb to a friend of mine for $100, but turned around and had to spend near $280 on a elite (so basically spend $180).

Now the newer "slim" systems have a bigger hard drive and come in sexy editions (see the Starwars one or Gears one) and I'll probably be spending close to $400 on a new system. So I've basically spent a good grand just on hardware alone which is more expensive then the PS3. Knowing the low failure rate of Wii's and PS3's the 360 is probably the most expensive system to date... if you have the luck I do (and probably others do, considering the system has been out for so long).

NetLink for Saturn says, what? to the bolded :P

Why would you though?

360 was a success (not as big as it could have been with better marketing in some other countires than uk and usa). after the first box i did fear the next fast death when i bought my 360 at release but it went to be a succesful story for years. and i don't believe microsoft failed in japan. i just believe nobody will be succesful in japan if they have competitiors from their own country.

the whole car market in japan is only japanese cars. i believe foreign cars are only 5% of the whole market. if they have the chance to chose between japanese or western product they chose the japanese one. maybe nike and adidas are succesful there but if there would be a big japanese shoe company with worldwide succes i think nike and adidas wouldn't have a chance in japan.

maybe i'm wrong but i think that's how it works there, you can't compete against their own products when they are strong in that category.

but vice versa japanese car manufacturers are very succesful in usa. same with consoles/handhelds. so i think us-americans buy more foreign stuff than japanese customers do.

maybe apple but apple is another category, they are that "i have to have it" company which works almost on the whole planet whyever.

1. Huh? You mean on consoles? Because PC did it first.
2. Actually Dreamcast had the first online games....
3. I'm pretty sure you can buy TV shows on PSN as well. 
4. Netflix, VUDU, Hulu, Amazon Instand Video, all on PS3. I guess 360 was the first to do Netflix? I don't remember.
5. Live TV shows? Like what?

The first two are right and Microsoft should be commended for it, but the multimedia capabilities that you listed came to the Wii (some of them), PS3 and Xbox 360 roughly at the same time, and it was all down to third party companies.

Not downplaying anything. XBox 360 is an extremely successful console. But the RROD epidemic really held it back. The price hasn't changed since 2009 as well...if Microsoft kept the price as low as possible and if RROD never happened, the 360 would have surpassed the Wii by now.

But Microsoft seems to be only focused on profit right now. Do they really need to though? Getting a really cheap 360 out there and increasing brand awareness and marketshare to the poing of total domination could have been possible. Microsoft just isn't trying hard enough. 

I wish I could find the video but I remember before the 360 launched, X-Play went to Japan and asked people if they would buy the Xbox 360. Everybody was saying "No". The Subtitles were halarious!

*in Japanese with subtitles*
Reporter: "What is it going to take for you to buy an Xbox 360?"
Japanese Civilian: "If it is called the Playstation 3."

Next person
Reporter: "Are you going to buy an Xbox 360?"
Japanese Civilian: *nods head* "Aye." *subtitle: "No."

I know it's hard for you and other Sony fans to understand why a business making bank is important, but it is.

They certainly were the first to make it mainstream on consoles.