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outlawauron said:

What would lead to believe that these issues wouldn't show up now but after 1 year? It sounds like if you have a faulty machine, you find out real quick.

Well...

One year is enough time to sort out any potential kinks a console might have coming off the factory line, but poor thermal transfer between the SoC and heatsink/fan due to a bad thermal compound application or poor compound quality could result in a greatly shortened lifespan. The hotter the SoC runs for the greater amount of time, the sooner the failure. 

My original CECH-A01 PS3 died just under two years, probably because it had a good 5000-6000 hours of runtime on it, a good portion of which were at near 100% CPU (Folding@Home). So the one year warranty didn't cover it. I've had other heavy use PS3s die at around the 2 year mark as well. 

I generally don't pay for extended warranties on something I'm fairly certain I'll be buying more than one of in the future, but I am seriously considering going with the 3 year on the PS4 and will have until about mid-December (30 day window for new purchases) to make my decision.