crazy_dave: to be fair, they were successful with the Xbox 360.
StingingVelvet: Depends on your measure of success. The overall venture is still in the negative, and it came in third this generation in worldwide sales. It's a successful foothold though, if they keep building on it, but we'll have to see.
I thought in the last 6 months the overall Xbox/game division finally turned a profit? (including the years of the Xbox)
EDIT: maybe not as I'm having trouble finding the article which stated that. Of course looking at those charts I did find (which didn't include the last 6 months), Sony was doing no better or worse than MS for that same time period :/