Excellent article drom GI biz in my opinion. I, for one, will certainly not go thru the hassle of owning a 360 until reliability is fixed.
However, there is another problem which Microsoft faces at the moment - one which the company has shown even less sign of understanding, or addressing. It is the problem of hardware reliability and customer service, an area in which the Xbox 360 has a track record that is nothing short of utterly appalling - and an area which Microsoft absolutely must address, or risk handing the goodwill of the market back to its rivals.
Of course, this too is not a new problem. Microsoft has been slammed over the failure rate of Xbox 360 consoles, and its own poor customer service in dealing with that matter, many times before - British readers will undoubtedly recall that the firm was hauled over the coals on the Watchdog programme here only a few months ago.
This problem hasn't gone away; in fact, from a consumer point of view, Microsoft appears to have done precisely nothing to address it. While the attention of the media may have turned to scrutiny of Sony's failings, the vast numbers of Xbox 360 owners who have been let down first by Microsoft's shoddy manufacturing, and subsequently by the company's arrogant and unfair policies with regard to customer service, have increased. Their voices are contributing to a groundswell of unrest and negative buzz which will hurt Microsoft very badly indeed if it is not addressed.
The problem is clear. A large number of Xbox 360 consoles from launch onwards have shipped with manufacturing problems which have manifested themselves in the dreaded "three red lights" - an error code displayed on the front panel which means that the console has died, and needs to be returned to Microsoft for service.
The number of systems which shipped with these problems is a matter of some debate, but it's clear that it is a far, far higher proportion than the company originally admitted. Early claims suggested that Xbox 360 consoles were only failing as often as you would expect from any piece of consumer hardware - a figure generally agreed to be around 3 per cent. However, entire batches of consoles at launch were failing en masse - and the reliability, although it improved, continued to be poor for months afterwards.
Has this been fixed? Who can say - Microsoft has certainly made no promises regarding enhanced reliability for the Xbox 360 Elite console, so it's simply impossible to judge whether new machines rolling off the production line will be any better than their predecessors. Even giving the benefit of the doubt, that still means that millions of machines from the "unreliable" period of the console's manufacturing are sitting under televisions around the world.
This, however, is only half of the problem. For a new piece of consumer hardware to display a high failure rate is damaging, but not seriously so, as long as the company has a good system in place to ensure that customers' systems are being repaired, and goodwill is being maintained.
Unfortunately, Microsoft has made two massive blunders in this regard. Firstly, it has taken to shipping refurbished systems to customers whose consoles have died - not a huge problem in itself, but the reliability of these refurbished machines is also vastly suspect, which results in anecdotal cases where gamers have returned their consoles to Microsoft three or even four times, with each subsequent console suffering the same fault after a few months. These cases make compelling "horror stories" for consumers, and have been widely disseminated.
Secondly, despite its shameful appearance on Watchdog, and being lambasted by the press over its behaviour, Microsoft continues to insist that British consumers whose consoles have failed after its 12 month warranty period must pay GBP 85 (around 125 Euro) to have the system repaired. Its customer service representatives are adamant on this point, refusing to budge even when it is pointed out that these manufacturing flaws are clearly Microsoft's responsibility under consumer law, regardless of the terms of the firm's own warranty.