It's not "JUST" overheating that is the problem, the 3 red lights signifies a hardware error, not just overheating. The 360 has a fan Lee, thats the stupidly loud noise that you hear when trying to watch a DVD. The 360 is a poorly built machine, but becuase of the immense game catalogue and the fact that it was released a year and abit before the PS3 means that it has an advantage in the market. The only thing that the 360 offers that the PS3 doesnt is the depth of online play. The 360 has the best online system out there, Live is fantastic to use, the PSN system just doesnt stand up. The fact that the 360 is loud, poorly made, doesnt have a built in HD player, means that the PS3 is my system of choice. Microsoft really need to sort the 360 hardware problem out, and not just take the easy route of increasing the warranty.