In many ways the 360 were the market leader, and trendsetter this gen, so I would not call it a failure (altho the reliability was somewhat horrible).
Basicly if we judge MS from its 2 console cycle, they have been WAY above average, they have never made a failure.
If the next one will do as well? Im unsure, While I do tend to get a single console every gen, MS have not yet sold me on thier console (atleast from the rumor mill) While I from the outset have greater faith in Sony (or rather have faith that Sony does not make the same mistakes again), and Nintendo, who while delivering a lower spec console, again brings interresting concepts, and atleast from the outlook seems to appeal more to the "core" gamer (yeah we loathe the word, but the industry seems to love it).
So it all depends on MS, both on the way they market the next console, what hidden costs and premiums are hidden within their ideas, and how well they support games (their firstparty has gotten prtty abysmal). But maybe the lack of exclusives we see, is because MS dictated the focus towards the next gen, to make sure to have enough games at launch (which IS a system killer, if they fail to do so).
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