I would MUCH rather have my console fail in the first few months of me having it than have it fail 3 years after having it. If it fails in a couple of months, you get a brand new console, free. If it fails in a few years, you're shit out of luck.
That being said, I went through four 360's before I got my PS3. My first 360 failed the third of fourth day after I got it. My second one failed after about a year.. At the time, they hadn't announced that they were going to cover the RROD for 3 years instead of just 90 days or whatever their warranty is. I sat on it for about a month before they upped the warranty to 3 years. My third 360 took about 6 months or so to fail. My fourth one was going strong for over a year until some doucher stole it. It was stolen at the same time that the PS3 slim came out, so I instantly bit on it. I'm much happier with my PS3.
That being said, at least M$ had the balls to admit that they were having troubles with the 360's and extended the warranty for the RROD to 3 years. You don't see Sony doing that now, do you?
Microsoft was having widespread problems, as high as 30% at one point. Jokes were made, blog posts ensued, the media got involved. Microsoft had to deal with that pressure as well as the high failure rate. I do not believe that Sony has to deal with the same, so they probably will not do the same.
It would be a particularly stand up thing for them to do without media and public pressure, but I don't think many companies would.
