Not really, for the first year, you had to pay.
Nope for the first year you had regular warranty, even in America despite it's lack of consumer protection laws.
over here I would have had 5 year reclamation with or without MS' extended warranty. granted they actually offered free repairs beyond 5 years.
Then there's the little fact that, the RROD generally didn't trigger until a year after use, which is why it wasn't detected in the first place. the only people it triggered earlier for was people who regularly turned it on and off a LOT. causing temperature fluctuations. Being on all the time was in fact better. Regular use with being on "onc to twice"* a day and off during the night wouldn't trigger it until after about a years time or more.
*off to change disc/games doesn't count as it doesn't have time to cool down.
Many people who sent in their consoles to be repaired, also ended up buying another console while theirs was away, just so they woudn't miss out on gaming.
and as I said, these guys sold or gave the other one away, and thus, they where still in use. Also I think you're over using the word "many" a little bit. some core gamers with too much money or parents that spoil them, yes.
And actually, at the beginning the failure rate was the regular 5%, lower in fact, at around a year it hit 20%, and the 60% is only an estimate from third parties, never released as a confirmed value.
And while the PS3 failure rate was 11%, which is still over twice the industry standard, and it's gotten progressively worse. there's the difference, these 11% are effectively OUT, they're "dead", well not all of them, in europe they get repaired, and some of them would be in warranty in the US as well. but unlike the 360 the ones out of warranty don't get repaired and are effectively out.
And I didn't exclude Japan, I merely pointed out they're not enough to out balance the American sales. you also have to remember that the young" population in Japan are very small, with 60% above or near retirement age. so the PS3 target demographic is much smaller in Japan.
Also my 360 did a RROD about umm I think 2 years into it's life, and was repaired. Later I bought an Elite, just for the bigger HDD, and my old box was handed down. and my GF bought a Slim before we moved in together, so now we have one in the living room and one in the upstairs living room. so we can both play different games.