I am sure the 360 failure rate decreased in 2010 itself. Highly doubtful it was still 50+% in 2009.

my 2009 console jasper is still good and Slim aswell.

This is a thing of the past, hopefully wont repeat next gen!

Back in the day, I remember how bad the news was for a machine. But Microsoft managed to make loyal fanbase, even more than Sony and Nintendo, who continuously defended the system.

It's been an interesting situation. We might never know the exact impact the RRoD had on the fortunes of the 360. Would it have sold more units without the negative press? Would it have actually sold less units, since so many people have owned multiple versions? I don't know. Not that it really matters, "total units sold" is kind of a fanboy metric; Microsoft would certainly rather have sold fewer units if it meant not taking such a big loss from a financial perspective, not to mention the damage to the brand's reputation. I think a lot of people forget that the bottom line is profitability, not bragging rights.

It's also interesting to wonder what impact it has had on the 360's installed base. I know the PS3 and the 360 are neck-and-neck in that regard, but the last report I read on that subject had the PS3 inching ahead. That obviously shouldn't be the case, given that the 360 has sold millions more units total.

Regardless, Microsoft has to be happy that the RRoD is mostly in the rear view mirror. You don't what that kind of thing to still be in people's minds going into a new generation.

Taking a bad situation and in the end emerging in a good business position.

My personal opinion was that MS knew the risks, but knew that in order to grow as a business, they needed a head start.

In short: Gain marketshare and userbase now, fix hardware issues down the road. And now that the issue is fixed (albiet 7 years later), 360 has a sizeable install base, still 2nd place, and great 3rd party support compared to last gen.

Thank god this gen isnt a 1 console monopoly like last gen was. This one seems even all around.

The end justifies the means.

I'm sure that was taking into consideration everyone who had a 360  (a lot of people had the old unrealiable 360's).

If you look at the second graph it looks like the Slim 360 that came out in 2010 is about down to Wii fail levels (about 1.5%)

Oh man !

 There has never been nor will there ever be a tech product that has been so defective and yet not only survived but was profitable as well. 

The (gaming) media truly lifted the 360 on their shoulders this generation.

In case I'm not being direct enough, yes I am calling them ridiculously biased. Every single website and magazine got on their knees for the 360.

Technically speaking, the Xbox brand name will always have a committed fanbase. But I can't help to think that the gap between Xbox 360 and PS3 sales would have widen in favor of the Xbox 360 since of the launch of the PS3 if it weren't for the shottiness of the original Xbox 360 hardware. This is simply a case of consumer sacrifice for corporate gain. No excuse and defense for it at all.

Well, you could call for consumer sacrifice on both parts.

360 people buying a product that would likely break down and PS3 people buying an outrageously priced BBQ grill.

You cannot ignore that the 360 fanbase is very US based, US consumers are alot more compulsive and susceptible to marketing sh*t and the 360 was accompanied by a sh*t load of marketing.

BUT overpricing or selling stuff based on a gimick or brainwashing people with marketing is one thing:
Relentlessly promoting a highly defective piece of hardware over the years is another.

In my experience with technology no product could ever survive, no matter the loyalty without the press turning a blind eye. And by a blind eye I mean tearing their eyeballs out and following the one eyed king.

Being an American, approve of this statement since I have seen this firsthand as the common pop cultural behavior.  But be careful when stating this.  It might get you a ban/warning for just pointing out a negative general truth in regards to a group of people.