From my perspective, I think RRoD is worse, but there's some serious bias here. Some of my friends only play games online (they think single-player is a waste of time). Thanks to this PSN debacle, I've convinced them to ditch their PS3s and get awesome gaming PCs =) 

But objectively, you cannot "leave aside the data breach" as the article puts it. Both companies have messed up, and all direct consequences of their actions/inactions should be noted and considered. As it stands right this instant, even with the data breach in mind, I think RRoD is still worse. But, if the data breach turns into something even more serious, then RRoD will seem like nothing to the whole PSN deal. The thing is, it's too hard to judge now. The PSN thing is still ongoing whereas RRoD is a thing of the past.

So as of now, the PSN thing isn't as bad as RRoD, but that can change quite easily.

The RROD was a complete loss of console functionality, not just the online. On the other hand it only happened to some 360 owners, and it didn't cause loss of personal data.

So there you go, in some ways RROD was worse, in other ways the hacked PSN is worse.

Amazingly, from the financial perspective they may be close in the end, the PSN outage may be even worse considering the anti-fraud insurance Sony will have to buy for many PSN users (plus lost PSN revenue, possible lawsuits, money being spent on security firms probably working overtime, etc...).

dumb question and impossible to compare.

for a victom of rrod that wins.  a broken console, can't play ANY games.  But in like 100% of those cases the person went and got a new system that day, or in a week or two. 

but the thing PSN has oer RROD is that it EFFECTS everyone's console.  this isn't just those unlucky few that got a RROD, this is to every single person who has a ps3.  

its like comparing, whats worse.  when a guy robs thousands of dollars from a few of people or if he steals only a few dollars from thousands of people.   Same amount of money in the end.  Those affected by the former will argue that, fanboys will argue whatever is opposte their console.  Meanwhile the answer is they both suck ass and i hate both sony and microsoft for allowing either to happen

Oh, I forgot another thing... PSN outage affects not only PS3 customers but also PSP customers and maybe PS2 as well?

 PSN:

It only effects online. You can still play offline.
It effects every PS3.

 RROD:

The entire system becomes dysfunctional
It only effects about half of 360s.
You can buy a new system immediately if you can't wait.

RROD is worse for me. However, if you're a hardcore online gamer, you can't go out and buy a new cosole. So the PSN problem is worse for the harcore online gamers. And it's probobly worse if you have delicate info stolen; good thing I don't.

PSN was a much bigger blunder than RROD ever was. It's a good thing Sony finally got rid of it.

Too soon to tell really. I have a feeling that the financial damage maybe worse for Sony because of the cost of rebuilding PSN, the lost revenue, and the lawsuits.  Personally RROD was worse for me because I use my 360 far more than I do my PS3.

oh thank God no poll! lol

Personally I lose 10 days playing Mass Effect  when it RROD  vs I dont give a shit about PSN not online because I don't really need it atm. Now playing ME2 on ps3 but I need an update from PSN?

Hahaha

OT:

You guys need to understand there are people who play the PS3 without ever creating a PSN account. What did they lose again? Nothing.

RROD affects anyone and there was absolutely no way to dodge it. After the bigger HDDs started coming out there were ways to dodge overheating issues and all, but it was quite late and expensive.

Well for me I really don't mind PSN being down cause I have a 360 as well and I play COD and online games on it.  What really bothers me is the possibility of my personal information being stolen from PSN.  Of course I am poor so they won't get much from me anyways.