Sony vigorously disputes the claims made by the BBC. According to the company, Sony Computer Entertainment has run searches of its customer complaints database to identify the number of reports made to it regarding instances of system shutdown or failure in circumstances where the front panel yellow indicator is illuminated. The results show that of all PS3s sold in the UK to date, fewer than one half of one per cent of units have been reported as failing in circumstances where the yellow indicator is illuminated.
We're not sure who to believe in this case. On one hand, Sony appears to have made a very robust product, and we've yet to encounter any problems with our own PS3 units here in the United States. But on the other hand, the BBC is supposed to be a fairly trusted journalistic source (more reliable say, than Joe's Xbox fanboy blog).
Sony's warranty currently covers PS3 owners for one year after purchase.
In response to the "Red Ring" failures, Microsoft extended the warranty of the Xbox 360 console for up to three years to cover the problem under specific circumstances.
A first-generation PS3 unit displaying the yellow light of death.