I can say from first hand experience the 360 has some major problems as far as heat issues go. But there also seems to be some basic functionality going on too. If you really want to mess up your console try rapidly turning it on and off while ejecting the disc over and over.
I agree with one of the aforementioned posters about sometimes it being a matter of luck if you get stuck with a system that works for its entire lifecycle or having a barrage of problems constantly. For instance, it took, I believe, 1 or 2 Saturn exchanges before I've found one that works flawlessly every time. The Dreamcast, my lauch-day version died not too long ago and the successive ones I've purchased have all worked great. Playstation, now that's another story. I used to work retail a few years ago, right around the time the DC and PS2 came out. As far as hardware go, I have never seen so many problems as there were with the PS2. People have their dvd drives stop reading certain discs, they would lock up, wouldn't turn on, all sorts of problems. I think that's part of the reason Sony has so many systems "shipped" because they've had to constantly send replacements lol. Even my friend's slimline PS2 went out not even 6 months after purchase. It would cost so much to have sent out and fixed but that costs so much anyway, it wouldn't even be worth it. He would like to just buy a new one, but he can't exactly afford it and neither can I. So, I don't know. I guess sometimes its just hit or miss... *Edit - I guess I'm lucky b/c I haven't had a single lock up or freeze on my 360 (knocks on wood)...
It almost looks like the same problem that was occuring on the in store demo units when the first screenshots started appearing..(walmart was it?) Anyway, I've got a couple of x360 that are almost a month old and so far, no probs with them. Having said that, I wouldn't be surprised if either one died given the amount of heat and noise they put out.
Well the expected performance of any console is PC, includes the long hours of continuous play on the system. Considering that the XBOX is being pushed in a way that should appeal as a media center and gaming station, that transaltes to many hours of continued operation, and it's shameful for Microsoft to put out something so fragile. I have no doubts that in time the issues will be fixed, but leaving a bad memory at the get-go can sometimes be all it takes to make a bad name for a whole generation for a company.
I think it may be a bit more than luck. More likely production runs, combo luck. Notice how some posters are saying "Myself and 5 of my friends have fried 360s," while I'm saying the exact opposite... mine and everyone I know have a perfectly functioning unit. More than likely shipments were partitioned at similar times on similar pallets. I wouldn't say anyone is exaggerating about a potential problem, but I will state that no one I know locally or virtually has had any problem with their 360 (sans assembler, whom I really don't know).
