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Yeh, the first batches of xbox360's did seem to have a lot of horror stories about scratching discs and overheating power supplies. But as product launches went for an electrical item, it actually had a medium / low rate of faults per unit sold on average fault/return.
If i had the money to splash right now, i'd have already bought one, there are 3 or 4 games that do take my fancy enough for me to warrent getting one. Saints Row (out soon), Dead Rising (out soon), Table Tennin (out now) and PGR3 (out now), to name just a handful. Plus the backward capatability with most games is appealing as i do have alot of ex-capital locked up in xbox1 games, which would be pennies to sell now, but worth keeping for gameplay value.
Not much has been shown of really what the PS3 applications will be like. Obviously sony have shifted out many graphical demos using the engines of some games, using the PS3 to run it off, and everyone's looking at it thinking it's going to be substantially more powerful, where the truth of it is, the ps3 vs xbox360 power wise, would be in the same range as the difference between the ps2 and xbox1, most developers will be making their games for, well all 3 consoles probably, so radical differences won't be too apparent. Either way, nowerdays, if you're looking for graphics in a game, you can't look at either 3 of these consoles, you have to look across to the PC, with some real next gen graphical revolutions in DX10 and the new windows apps, the PC again will leave consoles for dust when it comes to hardware implications.