Q: Do they suffer system failure a lot? Or scratch the disks? Or was that just the first model, the core?
A: They really have no difference besides just that 1 has the hard drive and the other one doesn't. System failure only happens if you play 24/7 like most people out there complaining about it. Microsoft offers you an extra 3 years of warranty if it gets system failure aka Red Rings Of Death. I've had mines for a year and nothing bad has happened to it.