I guess its a nice fantasy  .. the problem with that whole theory is 360's that had the RROD were warrantied through Micrsoft for 3 yrs.. so anyone who had the RROD called MS's toll free number..  a free priority shipping box was sent from MS.. once you received your box ( often termed a coffin by 360 owners ) you shipped it.. your unit was then repaired at a repair depot and sent back.. I actually painted my xbox black so I was afraid they wouldnt honor the warranty, but they did.. and it was also how i could tell the unit was mine right away.. My cousin also had his fixed.. he received back the same unit as well ( you can see by serial number ) .. there are stories where some ( although few ) received back entirely new units.. in cases like this is was often because so many parts needed fixed it was cheaper just the replace the whole console..

When other consoles have trouble under warranty I guess they count as a sale too huh?

 Also.. if there are more PS3's out there.. how come even now the best games out there ( multi-plat ) still sell better on the Xbox ?  The Xbox can only sell more because either a) more people play games on the 360 then the PS3 ... or.. b) more 360's exist - which means more people buy 360 games..  Almost all multi-plat titles sell ALOT more on the 360..   and if you want to go the "exclusive title' argument it looks even worse for the PS3..

So far.. COD MW 4 has sold 2+ million more on the 360.. and looking back COD Black Ops ( PS3 best selling game so far - but will get overtaken by COD MW4 im sure )  also got outsold by the 360 version... why ? Its because more people own 360's... Look up software.. the PS3 hasnt sold more software no matter how much you argue 'variety'.. All anyone has to do it list all PS3 games.. look at the totals on bottom of screen.. then do the 360 

When it comes to active install base, the PS3 is of course ahead.

By the way, most of you people are only thinking of RROD/hardware failures, but there is at least one other important reason: Piracy/Microsoft's banhammer

One of the reasons the 360 is so popular is because it's so easy to play pirated games on it. Depending on what model you have, this usually doesn't even cost a single penny, and has been possible almost since the 360 was released. The only downside of doing so was the fact that Microsoft was able to detect modified consoles if they were connecting to Xbox Live. But Microsoft did not ban every modified console as soon as they knew it was modified; instead, they banned all modified consoles pretty much at once, but only once or twice a year - which people then called a "banwave". Since the 360 is so cheap, this strategy led many game pirates who just couldn't live without XBL to buy a new console whenever their latest modified 360 got banned. Some of them also buy one additional 360 that they don't modify, for playing a handful of games they actually bought. I have read dozens of postings from people who said that they are owning three, four or even five 360s so far because of this.

Looking at 360 hardware sales numbers around the banwaves, it's possible to see that some of these banwaves caused additional sales of about one million units per banwave.

And the banhammer isn't the only reason Xbox 360 piracy is driving Xbox 360 hardware sales:
Microsoft decided that modified consoles completely lose all waranty etc., so if you modified your 360 and it gets a RROD or any other kind of failure, you cannot send it in for free and so you are pretty much forced to buy a new console - even if you purchased the 360 only hours ago.

Wasn't the thread locked???

Oh, well, after all the arguments have been carefully and impartially weighted, the VGC Grand Jury has declared that the winner of this dispute is:

PS3

Curious, it's letting me post in the thread again...

Anyhow, back to the topic, how many RRoD vulnerable XB360's are still around? Even the last revision before XB360S still had a failure rate ~3 times as much as industry average. How many of those still working (for the time being) are already out of warranty and will have to be replaced with regularly sold ones when they break? How many did already break out of warranty? How many XB gamers can't wait for the replacement, particularly if the RRoD happens during the Xmas period with lotta new games to play, and buy a new one to replace the faulty one immediately? Refurbished old models sooner or later will break, as their very design is flawed, and MS extended warranty will expire, so millions units could end up having to be subtracted from the total sales numbers (and not including owners of  more than one XB360) to get the number of XB360 owners.