Still failing? Wha? Has NEC, at any time, ever, actually been "failing?"
The PC-FX was the closest thing they had to a failure, and still it was a minor success that made them money for nearly five years, it just didn't do well when compared sales-to-sales with the Saturn and Playstation. The only people that lost anything on the FX were the people who bought one hoping for lots of great arcade ports and shooters.
The PC Engine/TurboGrafx-16 was a monumental success that didn't do well in one particular market (they still made a shitload of dough, regardless, because of its success in Japan).
All that said, NEC has its hands in so many home electronics, computers, and appliances something like the TG-16 (talking US only here) or PC-FX is about as important to them as selling snowblowers is for Honda.