A little from column A, a little from column B.
On the one hand, the PS3's weird architecture made porting older PC game engines (like Bethesda's Gamebryo, which drives Skyrim and Fallout 3+) extremely difficult, and much-anticipated Skyrim DLCs were long-delayed by problems that existed on the PS3 but no other platform Gamebryo supports.
On the other hand, once Xbox 360 games started getting ported to PS3 and the graphics were compared across the two systems, the consensus was that the PS3 really wasn't much more graphically powerful at all. There was one sports game in particular (boxing? I can't recall-- it's been too many years) that was a particularly telling case because the PS3 port had had something like 6-8 months of extra optimization work, and despite that the launch-day Xbox 360 version of the same game looked and played better.
"Failure" is strong; obviously the PS3 wasn't a failure as a gaming system. But its weird architecture certainly didn't deliver the benefits Sony claimed it would, and it definitely made things more difficult on game developers.