According to a Game Informer survey, over 50% of XBox 360 owners have had catastrophic failure of their consoles.
Fifty. Imagine you were about to buy a TV from a manufacturer who you found had half their TVs go bad while under warranty.
Yet according to the same survey, people play their 360s slightly longer per day than their PS3 or Wiis and only 4% said that console failure rate would play a role in a future purchase of a 360.
M$: Success Despite Our Involvement