They fail, just like any other piece of electronics equipment. My first GC died a week out of the box (drive mechanism stopped working). I'd be interested in knowing the fail rates on various consoles, although obviously the manufacturers probably aren't too keen on releasing that info. Opinions on game forums always seems to lean towards "Playstation and Xbox systems have all sorts of problems while Nintendo's systems are rock-solid". However, in my personal experience both my Playstation and PS2 still work perfectly as does my Xbox despite much heavier use than the equivalent Nintendo systems. Over the years the only systems I've had problems with have been Nintendo and Sega consoles (original NES: dreaded blinking blue screen, SNES: broken cart lock and broken pieces of plastic inside pads after a few weeks of use, Gamecube: dead disc drive, Gameboy SP: 3 straight systems with one or more stuck pixels, Sega Genesis: video output problem, Sega Saturn: drive failure, Sega Dreamcast: drive failure). Anectdotal evidence is fun!