My local EB Games had something like a 70% failure rate at launch in Australia last week, according to my friend who works there. It was so bad that not only couldn't they fill staff orders for the system, but they couldn't even spare a display unit. Management wasn't happy. At all.
I don't know if certain batches are rolling off the line faulty for some reason, or what the deal is, but only having a 1% failure rate seems...unlikely.
Either way, this is exactly why personally I always wait a while for new technology, let them have enough time to (hopefully) sort out all the early bugs and flaws first, then see what's what...
I still haven't decided which I'll ultimately buy, XBone or PS4, it'll depend on the games released over the coming months, both cross platform, and exclusive. Because, at he end of the day, it's always about the games, everything else is secondary. So far though, I haven't heard of a single game that is screaming 'must play' at me, so I imagine it'll be a while before I even consider making the next gen jump.