No.

Wrong,The first year 360 sold about 5 million,so 16% is nothing to the actually 25 million sold...

also you have to consider every console that someone shipped to microsoft personally is not gonna be counted into sales. If you have a warranty at the store and return it there, then possibly.

Though the store may also then ship to microsoft and would not count into sales. You are talking like everyone just says "oh shit, its red. Better throw it in the trash"

Anecdotal, of course, but I went through 2 Playstations and 3 Playstation 2's over the five years that they were Sony's respective primary consoles. My 360 did RRoD, but it's still the one I originally bought........

It is not generally accepted that RRoD is fixed.  It is generally accepted that it has gotten better.  35% to 15% is an improvement , but no where near the PS2 failure rate or the PS3 or Wii.  Again this is the 3rd year and it still has a failure rate around 15%.  My launch PS2 lasted 7 years.  It did die, but I doubt any launch 360 will still be running after 7 years of use.

But the failure rate of the first year is about 35% not 16%.

My brother had two PS2's that had to be returned because they scratched disks, and this fault became apparent during the first few days of use. He gave up on the PS2 after that. His 360 also got the dreaded RROD recently (after a year and a half's use).

Hardware failures are a pain and I appreciate that the 360 originally had an unacceptable failure rate. To their credit Microsoft were great about fixing the problem. After reporting the problem to Microsoft he was sent an e-mail with an attached pre-paid label so that a courier could pick it up from his house. A call to the courier gave an approximate time that it would be picked up. His 360 (or should I say a brand new 360 with hardware revisions) was returned with a letter of apology about 10 days later. A lot of people deride Microsoft but that is quality service.

 That is Customer Service.  Quality control is what they lack.

by the second year of the 360 they had the Falcon comming out... it's fail rate was well within norms... the problem is that Microsoft kept sending 1st gen failed systems back to people and they failed again... if they had replaced them with Falcons or better you wouldn't see people talkign about being on their 5th system

Don't know. Don't care.

Does it play the games I love to play? YES

Can I play online and chat with all my friends from all over the world at the same time? YES

Is the system affordable and come with everything I need to play immediately? YES

That's all I care about then.

Both my PS1 & PS2 failed and I had to buy new ones. So it doesn't faze me much. I care more about the games.