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Grey Acumen said:
I thought the whole issue with the 360 was traced to putting too much or badly formulated heat transfer paste that went between two circuit boards or something?

No.

There are a pile of theories about the currently ongoing 360 reliability issues (brand new bundles still get the RROD at unreasonably high percentages). Microsoft hasn't fixed anything yet. They've added extra GPU cooling, but that doesn't seem to effect the problem at all.

The most plausable theory right now is that the 360's 'X' clamps cause an uneven distribution of pressure on the motherboard. Solder points on the motherboard eventually crack or fail due to this, which causes the RROD failure. The towel trick seems to lend some crecidence to this and I know quite a few people who have temporarily fixed the RROD issue with the X-clamp mod.

At any rate, 2 years into production Microsoft still hasn't managed to make the Xbox 360 remotely reliable.

Also Nintendo has no debt ( while Sony do ) and has more cash than Sony. If I'm wrong Fishy Joe can correct me

Sony has been selling businesses/assets to increase their cash store.  For example, they recently sold some sort of insurance division and also they sold their Cell fabrication facility to one of their biggest rivals, Toshiba.