[quote name='KaneRobot']Make note of the difference there.
It's pretty obvious that it was, especially compared to "any other consumer electronics item," which is a ridiculously broad spectrum. Hey, remember when all those people returned crapped-out Gamecubes soon after launch? Me neither. Even the O.G. XBox was a paragon of stability and reliability compared to the 360.
I question the perception of people who think it was just business as usual. I guess if you trust Microsoft's numbers, that's your perrogative.[/QUOTE]
I disagree. We just think 360 had more failures because A) it's fresher in our minds, B) is selling a lot, so will have a larger bulk number of failures as a result (think NYC murder rate compared to Camden, NJ), and C) we weren't on message boards when PS2 and Xbox released. Also, initial reports were likely marred by a botched batch that Microsoft sent to media/publishers. Mine was personally unable to connect to Xbox Live, but Microsoft sent a new one out before I even had tested it. Some may consider that in the failure rate; I don't. It's not like those receiving that shipment paid for their units, so they don't count as consumer products.
Being in the industry, I do remember a ton of people complaining about disc read errors with PS2, and my personal Xbox failed like a mother -- remember the hard drive problems? PSones had more than their share of broken units, obviously.
Poking around online, I see iPods have a failure rate of 13.7%. The average acceptable failure rate for consumer electronics (which is a broad spectrum, I know, but electronics all have lots of shit within them -- and it all can break) is around 6-10%. I can easily imagine TVs, stereos, and computers falling under that percentage. I don't think 360 is doing worse than that.
We're all going to skew our perspective based on our own experiences. If my 360 purrs like a kitten (it does), I'll think the system is more reliable than the guy whose launch-day unit shit the bed. It's all about percentages. And back to the OP, I really don't think more than a miniscule amount of people bought two Xbox 360s because of a failure.