All 3 of my next gen consoles failed. The Wii had artifacts a few months after I bought it, and it was replaced for free. I even had all my saved games and Miis backed up. The 360 died after 3 years... not the red ring, but a graphics card failure. I am amazed it lasted as long as it did considering how heavily it was used. And at least when I bought a new Arcade for $200 I could just swap out hard drives, meaning no data loss. Then just 2 weeks after the 360 kicked the bucket, my PS3 started turning off. Eventually it wouldn't turn on again, and was giving me the yellow light of death. This was by far the worst experience since I lost 10 years worth of PSX, PS2, and PS3 saved games. I transferred my memory cards to the PS3 when I bought it, and then I sold them, which was a huge mistake. I was hoping they could salvage them, but they couldn't. At least I got another 60GB... I was terrified that I'd lose hardware based backwards compatability.
While I treat my hardware with love, I think the problems with my consoles, at least the PS3 and 360, were related to how hot they got in my entertainment center. After both of them died, I moved them lower down and now they don't run nearly as hot. Word to the wise: if you have an entertainment center, DON'T PUT YOUR CONSOLES ON THE TOP ROW! If you put them in the middle or on the bottom, the heat will go up to the top level, leaving your system running at normal levels. Plus, the HD consoles only died after I moved to a new apartment where my entertainment center is located in a loft. The loft gets warmer than the rest of the place, so I think that may have been a factor as well.
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