Point being that the xbox fails more because of one hardware failure, that microsoft fixes for free. I know people that send their PS3's back for WAY more than one hardware failure.
that 50% failure rate, and 3,000,000 more consoles sold, obvsiously shows that the people that have the red ring either wait to get it fixed, therefor not buying a new system, or want it so bad that they just buy another one.
a lot of people buy the PS3 for the blu-ray and nothing else, which means that most of the time the ps3 is sitting around doing nothing, and when its not on, it can't fail.