If we are to believe all the claims made by the companies about their products, then Sony’s PS3 is apparently more reliable than Microsoft’s Xbox 360. At the Edinburgh Interactive Festival, the head of Sony Computer Entertainment Europe, Chris Deering, disclosed that the failure rate of PS3 consoles is 0.02%. This failure rate puts Sony well ahead of Microsoft, which has said that the failure rate of the Xbox 360 is “well within industry standards” of 3 to 5%.
Microsoft, however, has declined to disclose specific failure rates, even in the light of Internet reports that suggest the Xbox 360 failure rate is between 25-33%. This, however, hasn't stopped the company from doing things to address Xbox 360 failure rate issues, including offering free-of-charge repairs on all machines manufactured in 2005, refund on all paid repairs of its launch units; an extension of warranties from 90-days to one year; and the replacement or repair of out-of-warranty units at discounted price.
Right now, there is an on going perception, that seems to be rooted in reality, that the Xbox 360 is less reliable than the PS3. That perception won't be easy to change, even with the best marketing strategy.
Clearly, Microsoft has to do something about its hardware, and that is exactly what seems to be happening with Taiwan Semiconductor Manufacturing Company
disclosing that Microsoft has begun using cheaper and cooler-running 90 nanometer RAM for the Xbox 360, to possibly help reduce the number of machine failures.