Really depends on how much stock you place in the US market versus the whole of the world.
Objectively if you "lose" America but win everywhere else and come out on top as a result, is that a bad thing? Especially given that the global market is likely growing more rapidly year-by-year.
Yeah but in the case of 360 vs PS3, PS3 only (literally) sold a couple or so million more LTD, and due to other factors when building the machine (blu-ray, Cell processor) they lost more money that gen than they made (keep in mind PS3 losses wiped out all their PS1
AND PS2 profits).
Sony won that gen in terms of overall units sold but given the plethora of other markets it was in, the amount wasn't terribly impressive, and it was never enough to recoup on the losses PS3 got them. Versus MS's strategy which was mainly two markets but they did so strongly in that gen that weaker performance in other global markets didn't matter, and they saw much more revenue and profit than Sony that gen even with this factored in.
Honestly speaking neither strategy (hyper-focus on select markets and other markets take backseat, vs. focus on all markets but with resources and attention spread more thin) is inherently
bad, but for 7th gen MS's approach worked out better. Sony's approach, however, helped lay the bedrock for 8th gen, and they've also encroached on MS's 7th-gen strongholds which has only helped them. So an approach like MS's only really works when you can maintain your strongholds, since you have more of eggs in one or two baskets, so to speak.
Again, neither approach's
inherently bad and I actually think some industries like Hollywood could learn to focus on the former again (that's partly how you get success stories like Joker; versus a film like Rise of Skywalker which tried appealing to everyone but ended up appealing to almost no one, and won't be a very profitable film at all*). But like any technique, there's good and bad ways you can apply them.
* Hopefully people understand what I mean by this analogy. Not saying for Hollywood to make movies only for Americans, but moreso that they should return to making movies with certain sensibilities and tastes that can potentially apply to anybody but due to cultural reasons might appeal to just prevailing tastes in a given location or so. That instead of going into their movies thinking "What elements can we include to placate to all of these different countries/location first, and then write a story and script around that", they should return to writing stories they genuinely want to right and letting their appeals land where they do; the latter
always produces better films,
every single time.