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I think one of the main reasons you could argue the PSN situation could be worse is that it affects every single PS3 out there at once. The RROD situation was a very costly and widespread failure on Microsoft's part however I give them credit for rebounding nicely. RROD really hurt their wallets but they managed to keep most of their 360 owners at least satisfied enough to stick by them. In the end, I think it's a wash but people shouldn't underestimate how different these two problems have been handled.