You are absolutely right. A console coming in second or third doesn't mean its a failure. There is a catch though.
Lets take the PS4/XB1 for instance. Right now, the PS4 has a global lead of around 2:1. (Its less but generally close). Now this early in the cycle, and 2:1 basically meaning 8M vs 4M, isn't actually so bad. But what happens in 2yrs? When 2:1 could mean 50M vs 25M, that is when things get bad. Cause at that point, whoever is at 25M loses every ounce of bargaing power to secure any kinda exclusive content. Its not about moneyhatting, its that because of how much better the competition is doing, itr would cost you more to make anything exclusive to your console. Even DLC.
Then it gets worse, you start to see publishers going exclusive on the better selling console, which ultimately means less games for the lesser selling one which in turn means an increase in sales rate of the better selling one. That is what happened during the PS2/XB era.

















