We got an XBOX 360 in 2005, a week or two shy of Christmas. Last summer it finally died, red ring of death. Microsoft though extended it's warranty policy and repaired it. Of course we didn't get a new one and we got another old one. Today (a month or so after the warranty was over), the system got RRoD again.
The XBOX being dead is one thing, something I could probably get over. But my brother and I have a wicked dynasty going in NHL 09 where we committed to playing every game of the season, positioned locked each game at the same spots (C and LW.) We were two games from finishing our season and facing the #8 seed in the Western Conference. We've been riding a hot streak for quite some time after dropping six in a row and trading for Sundin on the trade deadline. So so lame it had to die now.
Seriously, if you have yet to get a system, go for the PS3. It has never given me problems, runs quietly, plays Blu-Rays/.avi's/etc, and has a great lineup coming out. The 360 is a good system, but I know more people who have had their systems die than not (granted not much more, but a lot more than Microsoft claims with their failure statistics.)
/ rant