Why does it seem that some people are trying too hard to spin this negatively?
They owned up to the problem, and have extended the warranty so even my launch X360 is covered for another year. Geez, this is a good thing, for everybody except Microsoft's bottom line and people wanting the X360 to fail. A full out recall is not going to happen, they hardly ever do in the CE world.
Edit:
Sis, I've had a June '06 box fail (as I recall) which was actually bought new in Nov or Dec '06. so that's more than 6 months from launch, but not quite late '06.
Of course, but they're only owning up to it because they have to. Given the magnitude of the problem, they should have owned up much sooner, and in any case I believe they used cheap components inside the 360 to try to save money. Looks like its going to cost them more in the long run, quite possibly a lot more.