90+% of xbox game sales are digital, playstation not too far behind.
Not one person here walked into a retail store and purchased gaming hardware.
Physical space for gaming products will continue to shrink as it’s been over the last decade or so.

I bought a Series X, a PS5, and PSVR2 in person in a retail store.
Also 90% of xbox game sales don't exist. Ya'll rent you're games, that's why the price of the brick went up.
But more to the serious point. I don't think hardware not being on shelves is a sign of failure on its own.
DVD sections in stores are virtually non-existent and people are still watching movies and tv shows.
Shifting the conversation further from the point; The distribution model of competing for floor space at a traditional retailer doesn't make as much sense anymore in the world of Amazon same day and next day delivery.
I wouldn't be surprised if in the very near future Amazon offers an option to pick up your stuff within an hour at one of their warehouses and your entire order is picked off of shelves by robot arms, placed on a conveyor belt, brought to you at a desk where you scan your Amazon app QR code, grab your stuff and bounce without interacting with a single human.