I believe the failure rate of 360 has gone down - but from it still seems to be too high overall vs other consoles.
MS problem is there is no real way to prove this. The stigma is there that the console is unreliable and its very unlikely to change. All it takes is one post on an internet forum to maintain that view.
MS - like many other companies before it in other fields - is paying the price of releasing something with a major issue and having the perception fix in the public domain.
They'd be better to make a big song and dance publicly about a new model that fixes the issues - and I don't mean new chips or whatever. I'm thinking of what Mercedes did when their A class turned out to tip over. They made it very clear, very publicly, that they'd gone back to the drawing boards, ironed out the issues, and the V2 was fine. MS hasn't really done this I feel.
Try to be reasonable... its easier than you think...
