I wouldn't worry about it.  If it was really a problem it would be all over every gaming site, not just a few forums linking to engadget.

I don't see anything on the SA forums about the NXE killing consoles. And they have a shitload of Xbox 360 failures.

Why are you talking about sales? If I wanted to, I could talk about how the more expensive, NO GAMES PS3 outsold the 360 last Christmas season and most of 2008....but that has nothing with 2 separate articles (engadget and Gamespot) talking about how the NXE is causing problems.

So where in that article does it talk about the RRoD?

If you're talking about the freezes, it is a known issues that you can get 30 second or so freezes and wouldn't be surprised if some people reset their console early and others are actual freezes that requires a reboot but that article doesn't say anything about bricking consoles.

And considering that those freezes come mainly when fiddling with the avatars, I'm going to take a shot in the dark and say that it's probably a problem with the avatars and a shit-ton of people fiddling with them.  I imagine it will be fixed in the coming weeks when everybody isn't fiddling with them at the same time and they've had some time to work the kinks out.

For as big as an update as NXE is it has gone pretty smoothly.

-edit-

Also, I would consider this widespread if I saw seperate stories about RRoD's on multiple places like IGN, Gamespot, Kotaku, Eurogamer, Escapist, Destructoid, VGChartz and most other game news sites, not just Gamespot and Engadget.

The Gamespot article is just talking with various problems like freezing to nitpicking things like the giant grey circle at the bottom of the screen while the Engadget article is talking about freezing and RRoD issues.

My Xbox 360 freezes/crash all of the time and I live with it. I don't think it's exclusive to the NXE -- with some games the system just habitually freezes. I had it freeze 2 or 3 times after about 20 hours of gameplay on both Rainbow Six: Vegas as well as Saints Row 2.

Also, take a look at the engadget poll:

According to that, 6.5% of readers encountered a RRoD issue.  That doesn't seem like a big scary number but you also know for a fact that fanboys will be fanboys and will pick the Bricked and Microsoft said "die in a fire," charging $100 option just because they can.

So lets just assume that number is actually more along the lines of 3%, still not a really scary number.  But wait, if they are charged $100 that means their warranty has expired.  If that's the case, they have a launch console where people love to say those have a %60 fail rate. 

That puts that number closer to something around 1.2%.

So that's 4% of the readers encountered the RRoD.  4% of 23 million isn't a widespread issue.  That's even assuming the fanboys didn't pick one of the other RRoD options.

Good God, what did you type that on!?  :-p

Also (point of the post), what is fsod?

its in the Profile thingy.  sign into your profile and then go back into same box and you should see it.

fsod = frozen/freeze screen of death