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Infinity said:
I am a manager in the industry, and I can tell you first hand the failure rate I have witnessed, even with the newest SKUs released, is near 40%. You may be lucky enough to not have your 360 die on you, about 60% have never failed. Some brand new systems die after 15 minutes out of the box. Microsoft does have a 3 year warranty to replace your unit with another refurbished unit within about 6-8 weeks after sending your broken unit to them, however this only covers the red ring issue, not other 360 failures that are just as common. Microsoft also does not warranty scratches and laser burns that the 360 commonly causes games to have. There is a class action lawsuit in California against Microsoft for selling lemon game consoles as new, presumably working, units.

 

You're a manager in the industry?  What does that even mean?  A fancy way of saying you're a Gamestop manager?  I trust Gamestop managers about as far as I can throw them and I imagine managers of just about every other gaming shop are about the same (some of the funniest stories I've ever heard start with My Gamestop manager said...).

Anyways, I wouldn't worry about it too much.  The newer models are much more reliable and even if they weren't, you still have a 3 year warranty.  If it lasts three years, you have a keeper.