I think it depends on how much the bad reliability perception follows the xbox into the next generation. By all reports, reliability is much better now, but sales are still low compared to PS3 when you consider price and game libraries.

for sure, look at all the 3rd party support.... they have the best games (in my opinion).... exclusive of non-exclusive... as long as they deliver i'll keep throwing them money...

If they make back the 6 billion dollars they've lost, then yes. Otherwise, not so much.

They interrupted Sony's potential dominance this "gen", so yeah, MS was successful in a way.

yes. Profitability = success.

They will have made significant profit on the 360 vs significant loss on xbox.

They are battling the mighty Sony to a draw currently (slightly winning but fanboy will scream year head start, even though many used to say that PS3 will wipe out all 360 lead in a month or two), so that alone I think has far exceed MS expectation. PS2 outsold Xbox by like 5-1 if not more last gen, this gen they are keeping on par with PS3 sale so for MS I would think it's a success.

Sadly they (Sony and MS) both underestimate Nintendo return to the throne.