I think 1% failure is a bit low, I would venture to guess it's more like 5%. But the tollerable failure rate on all electronics is 10%. All electronics have bad bunches, it's just the way it works. Having under 10% failure rate is very good and very rare, having under 5% is almost unheard of for electronics, cars, toys, pretty much all consumer goods.
My first 60gb PS3 died 7 days exactly after I bought it, took it back to EB and they gave me a new one, that was over 9 months ago and haven't had a single problem since. Of all of my friends who have PS3s, no other ones have had any problems at all. I went through 5 PS2s over the 8 years it's been out. Sony learned from their mistakes, lets all hope Microsoft does too.
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