Does this only affect American systems? It's out over a month in Japan and I haven't heard of such a problem...

Good question, I was wondering about the same... I suppose average Americans try to use every device in every possible way that isn't explicitly forbidden in the quick-read manual, if present, or on the box (just forget about the full user manual, they won't read it even if threatened with death or torture, unless it contain funny comics).   

Well, I can tell you that neither me or any of my friends with one has experienced this

BTW, the article's picture shows white text on brown background: wouldn't S²oD (Shit Screen of Death) be more fitting?  O-) 

See, here is the thing, I don't know if this is a legit issue, or is one of those things that people do for shits and giggles like they did the xbox360 slim. 

Ever since the widespread of YLOD and RROD on early models, I think people want to get attention for pointing out a potiential problem, that might be so minor. 

PS: If you want the worse product launch problem (as in straight out of the way), I think it goes to iPhone 4 for droped calls because "you are holding the phone wrong". 

You infidel! If it's on one of St. Jobs' thaumaturgic devices, it's not a bug, it's a feature!   

Why exactly was this not a problem in Japan?

Nintendo is trying to hard to meet the "hardcores" demands.

hey! hey! i see what you did their.

hopefully the next box will reclaim its throne.

Shh! dont tell anyone!