I'm still debating on which to buy, so I appreciate this thread (as well as Drago's clip of emmanuel augustus haha by the way drago, I got that I must break you t shirt... people love it) anyways, the xbox is notorious for breaking. I didn't know about their revised warranty period, but I can all but guarantee you, that most if not all of those xbox 360's will be breaking down at that 3 year mark.
I got the 1st gen xbox when it first came out, and it worked well for a long time, but then it started with saying that the disc was dirty for new game even and eventually went to crap. EVERYONE I know, that got the xbox when it first came out, all said that their xbox completely died within a couple months of the xbox 360 being released. Several people in several different states, including me!
I still have a ps2 that still works great, 1st gen not the slim line and everyone I know that's had one either still use it or it still works at least.
BUT, the xbox 360 is dope. I love that system and still consider getting one. The price tag on the ps3 is outrageous, and Bluray is NOT the way to go and you're taking a monumental gamble on updating your movie collection in the bluray format if you choose to do so.
Sony has pulled this crap in the past. They have amazing engineers that come up with ideas that are cutting edge, one problem, they always want the money for themselves and keep the idea as a proprietary investment! Examples: Beta max vs. VHS tapes... how many beta max tapes have you owned or ever even watched? They had better video quality and sound, but companies aren't going to buy in to supporting a video format owned by one company!!
CD's vs. sony mini disc: Mini disc's were one of the best ideas in recent memory! You could hold 4 times as much information on one tiny disk, that is in hard plastic so it can't get scratched which would last you forever pretty much as still has cd quality sound... the problem? It was owned by Sony!
And now: Bluray vs. HD DVD's: It seems like a great idea right now, but the way of the future is going to be the downloading of movies and not owning them on a hard disk. Wal mart, which owns over 50% of movie sales domestically, is moving towards this direction as well. The reason I bring this up is, those movies are still like 40 bucks each, you add that to the price of the system and you're gonna spend a grip real quick.
My contention? The later xbox360 models are probably a safe bet. Most people that bought later model 1st gen xboxes still have working systems because microsoft finally worked out the bugs and they now have no problems. Buying the new 360 with the bigger hard drive is probably going to have some bugs for awhile too, but you see the fact that they are moving towards larger hard drives because downloading movies and games IS THE WAY OF THE FUTURE!