Depends on which POV, I thought they would struggle for a million for the quarter before release, I just didn't see the demand to purchase a surface to be that high. There was high interest sure because people are curious, but that doesn't translate to sales.
So assuming this number is correct, not surprised, so not so bad and no so good IMO.
If MS actually thought they would sell 3-5 million which was reported prior to release, if that article and projection were true, im not sure who at MS would think that, but they are likely out of touch with the market. Now if MS is saying 3- 5 million in a year? Possible, in a quarter? I would of said no way, so in that POV, very bad.
I had a conversation with an MS manager a couple months before the release and he admitted that they would have issues in distribution, they just dont have the channels available to get this out if there was super high demand. So they didn't expect high volume of sales out of the gate since the device would be essentially limited to MS retail stores in the beginning. Since they carry at BB and Staples now, I suspect the demand had died off a bit. So this conflicts with the 3-5 million projection that was originally reported. He also said that MS understood wp8 will probably struggle for a few years, but they are in for the long-term. When I say MS manager, im not talking about a store manager, im talking about a manager in corporate.
I purchased surface RT on launch day and I am happy with my purchase. I understand the limitations of RT and wanted a "tablet" only device. So I use it basically as a consumption device with the ability to produce with office. What they need to do now is optimize the 1st party apps and get some real apps and games on this thing. I would think they can get a couple of the xbox arcade games on this like a bobblehead baseball or torchlight. I hope they do.