I have Xbox 360 and (knock on wood) so far I haven't had a problem with mine. And for the purpose of playing video games, I do prefer it to the PS3 (which I also have, but mainly use for Blu-Ray movies).
Having said that, given the ongoing problems with the Xbox 360 RROD issues, I don't see why anyone in their right mind would use it for anything other than gaming. I really couldn't see myself watching movies on it, regardless of the format said movies are in. Why would I use a system that is known for failure for a purpose that can be accomplished through other already existing, much more reliable machines?
Gaming is one thing, since there are many games for 360 that you can't get elsewhere, and you need the system to play them. But watching movies on it just seems like a pointless waste.
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