Posted Jul 03, 2007 at 12:11AM by Sally B. Listed in: Xbox 360 Tags: Microsoft, Peter Moore, Best Buy, EB Games, customer service, Todd Holmdahl
Ó

xbox 360 failure - Image 1With Microsoft keeping its mouth shut about the actual numbers of the Xbox failure rate, Daily Tech took the matter into their own hands and started their own investigation to get a hint of what the real deal really is.

Daily Tech sent out surveys to retailer stores selling Xbox 360s along with in-store extended warranties. They asked the stores who offered such in-house warranties how many Xbox 360 customers claimed the warranty. The data gathered in the study revealed an alarming estimated percentage: around 33%.

Said former EB games employee Matthieu G., "The real numbers were between 30 to 33 percent," with a higher estimated rate for launch consoles. He further stated that the store he previously worked for had around 35 Xbox 360s on its launch date, with about half the number returned due to hardware failure during the first six months and two units already "dead on arrival".

No wonder Microsoft decides to keep mum about the actual failure rate numbers. The software giant claims in official interviews that the failure rate is only set with the industry standards, which is within three to five percent. When cornered, however, they often resort to drawing attention to their effort in fixing the problem. Peter Moore, vice president for Microsoft's entertainment division had this to say to Mercury News about the issue:

I can't comment on failure rates, because it's just not something – it's a moving target. What this consumer should worry about is the way that we've treated him. Y'know, things break, and if we've treated him well and fixed his problem, that's something that we're focused on right now. I'm not going to comment on individual failure rates because I'm shipping in 36 countries and it's a complex business.


Todd Holmdahl, who was in charge of the Xbox 360's design opted to avoid commenting as well. "I would say we don't have a high defect rate. The vast majority of people are really excited about their product, and that we are targeting profitability for next year," he said to Mercury News. When pressed if the failure rate indeed fell within the industry stands, he only said "We don’t disclose the actual number...we don’t comment on that."

However, the actual numbers have prompted one of the major retail store chains, EB Games, to revise its warranty policies both in the US and Canada, due to the high cost of having to honor the warranties of all Xbox 360s being returned for hardware failure.

EB Games nearly doubled the price of the one-year over-the-counter warranty, and instead of giving a brand new console in exchange of the defective one (like in the previous warranty program), disgruntled customers are given refurbished consoles instead. It has to be noted that the change also applies to the PlayStation 3 and Wii, not just to the Xbox 360.

The case is not isolated only to EB Games. Best Buy retailers whom Daily Tech interviewed also revealed a similar trend. A Best Buy customer service department manager, who requested anonymity, said that the console failure rate was estimated at about "between a quarter to a third of all units sold." He attests:

We see a ton of [Xbox 360s] come back all the time. We strongly push our customers to buy our service plans no matter what they buy, but it is especially important for them with the Xbox 360. It’s a lucky thing for us that Microsoft extended the factory warranty to one year, because we were having a hell of a time dealing with the launch units. Now we don't have to deal with those broken [Xbox 360s] until their second year, for those who have purchased the two year plans.


Microsoft, in turn, increased their initial warranty period from 90 days to a full year. Fixing out-of-warranty consoles will prompt the consumer to shell out US$ 140 to get it fixed by Microsoft.

All things considered, it should be taken into account that it is unrealistic to expect any product to have a zero failure rate. What matters most is that Microsoft should make steps toward addressing the issue, and not only keeping consumers in the dark.


[Via Daily Tech] Permalink  |   Email this  |   Linking Blogs   |   Digg It!

Bookmark / Find this article on:


100 Comments


Sort by:
   by Quixand - 2007-07-03
 » lol

oh man... this made my day.


   Re: ME (Unregistered) - 2007-07-03
 » ....

Standard MicroSux Quality... let people beta test their products.

I can see a huge class action against MicroSux. Jack Thompson, take note, this is the type of case ambulancing chasing low life would go for. :)

   Re: heath (Unregistered) - 2007-07-03
 » mine broke

Yeah I stood in line on release day and bought one and it broke. I'm not any sort of fanboy or whatever but i'm still happy with my 360 after microsoft fixed the problem. I'm more of a fanboy of xbox live than anything else.

   Re: Mister Common Sense - 2007-07-03
 » just a PS3 fanboy reporting

This article is based on reports of only 2 guys, FORMER EB Games EMPLOYEE (yeah, not even a manager or anything) Matthiew G. who took it upon himself to guesstimate 33%. Also, an unnamed best buy "customer service" drone said around 25% of the launch units were returned.

So what happened to the poll that supposedly took place? The article only mentioned 2 people who responded. 2 f*cking people! What kind of poll is that? You might as well ask quixand what the failure rate of the 360 is and publish it in Gizmodo. I can see the headlines now: XBOX 360 has 100% failure rate! Source: idiotic fantard Quixand.

So some consoles break, but the 33% is pure BS. It's just what happens when you believe figures from PS3 fanboy former EB games employees.

   Re: heh (Unregistered) - 2007-07-03
 » The Truth

Truth hurts doesn't it common?

   Re: Shatterdome - 2007-07-03
 » Not really...

I think it's BS...

Because out of 60 people with 360's that I know, not one has had a problem....not one....so if it really was something as high as 33%, out of 60 people at least one would have it fail....

People are just looking for headlines and ways to bash the 360 since it's the best console out there and PS3 users know it, they have to find SOMETHING wrong with it to make themselves feel better....

   Re: JK (Unregistered) - 2007-07-03
 » Your joking

I have a wii and a ps2, and i was looking to buy a 360, but this has made me think about this again!

   Re: Ps3 god (Unregistered) - 2007-07-03
 » mr.ps3

watch this is the same thing as this just better http://youtube.com/watch?v+JihoJEKD69A+mode+related+search+

   Re: Advertising -


   Re: Beejbc (Unregistered) - 2007-07-03
 » Shatterdome is an idiot

So you "know" 60 people and none have had a problem. Okay, so if I say I know 30 people and many have had problems, some multiple, well...that means 30/90 people that we know between us have had problems. Your small "sample" of 60 people obviously extrapolates to the entire ownership of 360s. Congrats, you've rewritten already known history.

Stop being such a *****ing fanboy. It's obvious there are problems, just leave it at that. Don't defend it, unless you're getting paid by Microsoft...and in that case, fix my goddamn 360 for free.

   Re: Shatterdome - 2007-07-03
 » no...

I'm sure there are problems, just not "33%" because yes, if it was that high i'm sure one of the 60 people I know would have had a problem....it's too high of a percentage for it not to come up once in 60 times....

Also, people play it off like your 360 WILL die at some point....i've tortured my 360 and it's still fine....so it's not an inherent problem, just random defects....

   Re: Stealth (Unregistered) - 2007-07-03
 » lol to Shatterdome

Thats incorrect, Its not how many people you know, its 33% of all consoles that has been released worldwide. So Your 60 people is 1% to how many consoles have been released and sold Worldwide.
Wow and i thought Mister common sense was stupid you basically just hit his level of ignorance. This is fact get over it. Why do you think MS isn't telling us, well here is your proof.

   Re: mister denial (Unregistered) - 2007-07-03
 » moron

uh did you read the article "mr. common sense"?. It says they tried to get official numbers from microsoft but they wont admit it. They wont deny it either because they know its true. you are a F***in nitwit. Its obvious that you and microsoft are in denial, why dont you just own it?

   Re: Shatterdome - 2007-07-03
 » ok..

Mr doesn't know the difference between ram and a harddrive.

It's too bad that these "Sources" don't list any firm numbers and just say "a ton came back" "oh, more durring launch, forsure...uh uh..." ...because then I could throw your logic back in your face and say that the X number that have failed are only a small percentange of those sold worldwide....but unfortunately the sources are unreliable and don't post any reliable facts....Not to mention that MS stated that 360's built in 2005 had a higher defect rate and these sources are all mention the time of launch and the times following....there are at least 2 million 2005 consoles out there, that's alot that MS already admited will fail more....means absolutely nothing about recent 360s...

Said it before, i'll say it again...33% is too high of a percentage not to happen once in 60 times...regardless of the total # of consoles out there......

Also, how are these worldwide statistics when the "Facts" come from two former employees of EB and Best buy which are NA companies?

I don't beleive everything I hear, sorry to tell you.....

Guess what... I AM a former EB employee and I worked at the largest branch in greater new york....we sold the most consoles in our store then any other store in the country, and not one 360 came back defective.....one customer thought his was broken, but his cat had just wiggled the audio/video connection loose in the back....

You know how easy it is to lie on the internet ? Especially on some random survey ?

Not that I care too much, because my box works fine and i'm not worried one bit about it failing...

   Re: Shatterdome - 2007-07-03
 » Denial...

"No comment" is a pretty common response from microsoft.....

I am not in denial...I'd be in denial if I actual saw these figures comming to life and tried to say it wasn't....but in my experience no one has had problems with their 360....

Also, why would I be in denial when my 360 works fine, and that is really all that matters...

The only reason I am debating in here is to maybe get you idiots that beleive everything that is shoveled down your throats to do a little critical thinking on your own....

The article here states it like this is a fact, which is missleading....at least the source article says "could be as high as"

Sometimes I wonder why I bother....

   Re: Stealth (Unregistered) - 2007-07-03
 » Shatterdome

lol You're as believable as your current stars, oh wait you have non lol.
The fact is its worldwide from all of these two stores, now add this to the defective consoles going straight to the MS headquarters That turns into 37%+, wow thats alot, i rather take my chances with a pricey ps3, not alot games and one that doesn't crap out.

   Re: antonio (Unregistered) - 2007-07-04
 » ^^^lmfao

my 360 that i bought mid february died late march and i got another under warrenty and that one also died the day after my birthday, which was may 12, so i got another under warrenty and that one is having trouble reading discs and is about to die any day now. so according to my experiance the life span of a 360 is a month and a half. i know 2 people that have launch ps3s and about 15 other people that have newer ps3s and none of them ever had a problem. i wish i bought a ps3 instead, imo the ps3 graphics are better and some great games have come out already and more are on the way. i can see the ps3 on top of the charts in a year.

   Re: Folding Junkie! - 2007-07-04
 » Shatterdome!

I only know 4 XBOX 360 owners and 2 of them have had to bring their consoles back. That is 50%! My point is not that 50% of ALL XBOX 360's break. My point is that I know 2 out of 4 and you know 0 out of 60 (or so you say). Every sample will be different! Yours proves nothing!

On top of that I know way more than 60 people but only know which console about 10 of them have. I don't believe your numbers any more than I believe it when M$ says that they are at the industry average for defective consoles. Their claim is BS and so is yours!

Have a nice day!

   Re: Advertising -


   Re: Shatterdome - 2007-07-04
 » You guys just proved my point...

Samplings from everywhere are different, so how can this be set in stone ? The only way is to poll EVERY 360 owner and hope they respond truthfully...

How do I know 60 people with 360's ? It's called 10 are real friends and the other 50 are people I talk to regularly on xbox live....it's really easy to make "friends" on XBL, and pretty much everyone has a mic...all my friends do, so we just blab away at each other while we play or watch movies.....guess PSN is lacking in that area as well...

But ya "so you say" and "so you say" and "So says he" and "so says the friend of he"

blah blah blah.....

I also like how you make up little facts like "37%" because of those being returned to MS headquarters....haha, ya let's pull some more numbers out of our asses....
   by TotalKore (Unregistered) - 2007-07-03
 » Dead 360

Mine broke yesterday... no ring of death though, every game just crashes... emailed them, got e-mail back with call customer service. Called them and the first thing they say is call back tomorrow, we´re having technical difficulties (in belgium). Very nice people over there *AHUM*


   Re: ... (Unregistered) - 2007-07-03
 » ...

I have made 472$ in April, 412$ in May, and 271$ (SO FAR) in June. You get paid in real checks from "KINGSIDE MEDIA" every month that you earn 10 dollars or more. It may seem too good to be true,
but I assure you it IS true. Also, with their referral program, you can refer people by sending them your link (you get when you sign up) and for every buck they earn, you get 20 cents also! (Think how much money you can make if you have 100 people making five bucks a day)
You do not have to enter your credit card or social security number. Nothing Harmful can come from CC. YOU DO NOT HAVE TO BE 18 OR OLDER, I AM 15 YEARS OLD AND REFERRING PEOPLE, AND I MAKE THIS MUCH MONEY A MONTH
JUST SPENDING A COUPLE MINUTES A DAY ON THE COMPUTER! THANK YOU VERY MUCH FOR READING THIS.
Think it's a scam? Read this(from the website) "We assure you that this is not a scam! Companies need consumers to try and review products, services, and websites and are willing to pay money to have them do so.
Most of the time you're asked to do this without any compensation, what we do is take the money companies give us for YOUR participation, and give you back up to 75% of it!"
There are alot of websites like this, I have tried almost all of them and this really is the best, and legit one.In addition there is a new UK section opened with more then $200 worth of free offers!
[NO AGE REQUIREMENT, NO CREDIT CARD, NO DETAILED INFORMATION, AND YOU DONT HAVE TO GIVE A SINGLE PENNY!]

VISIT HERE FOR MORE INFO, MORE PICX OF CHEQUES, TIPS AND GUIDE FOR EASY CASH! http://000url.com/money
AND FOR A QUICK PROOF OF PAYMENT....
http://img2.freeimagehosting.net/uploads/078f947140.jpg
   by Joe Mamma (Unregistered) - 2007-07-03
 » This website is really starting to suck

This is the third time I have seen this story on this site.. I have a feeling someone on the editorial board here is anti-XBOX..

How about this for a headline. The PS3 has no sales and no games and a ***** ass online feature.

Or

The Wii has retarded little kid games.



   Re: The Truth (Unregistered) - 2007-07-03
 » awwww

poor little MicroSux lover... can't handle the truth? Can you!

PS3 is selling more than CrapBox360 at the same period.

Wii is kicking azz.

CrapBox is dying.

That's the truth man.

   Re: The Real Truth (Unregistered) - 2007-07-03
 » awwww

Poor MicroSux lover, can't handle the truth? Can you!

PS3 sales aree better than XBOX360 during the same period after launch.

Wii is kicking butt.

XBOX360 is dying.

That's the Real Truth man...

   Re: sigh (Unregistered) - 2007-07-03
 » another loser

This article was on the xbox 360 you damned loser. Silly fanboy, It's not about the ps3, so why even bring it into this? I know why, cause your a sucker, an xbot, a fanboy, get a damn life.

   Re: mohaas05 (Unregistered) - 2007-07-03
 » ...

microsoft still won't admit they f*cked up with the 360's cooling system. nor will they try to fix it. i guess to them profit is better than quality.

   Re: fhd (Unregistered) - 2007-07-03
 » The best place to find ps3 hater is here even though this is about 360 failure rate

Lollllll look at that hater hes such a fa/g

   Re: dean (Unregistered) - 2007-07-03
 » duhh

Um this is a blog of other stories... I have a ps3.. I like the 360 also.. Fanboys of any system need a life.. anywho, If I had a 360, id be pretty ticked at Microsoft... ehh Hesitate to mention, but honestly, look at MS's trackrecord... oh well maybe sega will come out with the Sii and the world will be perfect ehh?..

BTW I deffinetly see a lawsuit, and would love to help start it.. Some big money there, 10m units wow alot of money to that lawyer.
   by Advertising -
   by smokeelaa - 2007-07-03
 » It does worry me a little

I got my 360 in January 06 and have been a little worried that it may fail. I am actually starting to hope somewhat for a class-action that will force them to repair or replace for free.

If numbers are anywhere near 30% there is a good chance this will happen.


   Re: Mister Common Sense - 2007-07-03
 » .

If you're worried, install an XCM fan upgrade and keep your system properly ventilated. You can also install some arctic silver 5 heatsink compound to lower temperatures a little more. My system lasted 15 months, but I did anyway for a little more peace of mind.

I still think the 30% figure is BS.

   Re: ugh (Unregistered) - 2007-07-03
 » mister

Dude, most people buy consoles so they don't have to bother about upgrading and messing around with the gaming system in general. Having to install all the stuff you just said, BY YOURSELF, defeats the friggin purpose. Not only that, not everyone has the technical know hows, to do this themselves. Secondly, It would cost more money if they had them installed by a repair store.

So I ask you, whats the point of buying the 360?

   Re: Mister Common Sense - 2007-07-03
 » so?

You pop off some clips, remove some screws, and install some new fans. Another plus is the blue lighting and digital temp gauge that tells you how hot the CPU and GPU is. My CPU normally is only 40 degrees and the GPU is only 50 degrees celcius. It isn't even close to overheating. It comes with good instructions. Is that hard?

I enjoy taking things apart myself. Why does everyone have to complain? Complain if it breaks and MS fixes it, wahhh 3 weeks with no XBOX. Wahh I had to spend $60 and a half hour to make a nice upgrade. Why pay to have a repair store install it? It's so easy. Ask me if you have problems!

I will answer any of your XBOX technical questions.

   Re: ugh (Unregistered) - 2007-07-03
 » mister

Just re-read what you wrote. You sound like you got backed up into a corner and don't have anything better to say. Stop defending the 360 so blindly. Yea popping off those clips and all that voids warranty. And last I remembered, not EVERYONE enjoys popping open a an expensive piece of hardware.

   Re: Mister Common Sense - 2007-07-03
 » whatever

He said his system was out of warranty so does it matter? It's not as fragile as you might think. You could probably find an installation video if you wanted. People mod the 360 all the time for piracy and whatnot. If you're too stupid to read simple step by step instructions or operate a screwdriver how do you know how to use a controller?

Sure you shouldn't have to do this, and you probably don't, but seriously, what is the big friggin' deal? I had to take my PS2 apart to replace and adjust the laser and it was much more difficult than this.

   Re: ugh (Unregistered) - 2007-07-03
 » don't bs

Don't bull***** us about changing a ps2's laser. I know perfectly well your lying. Some one just left a message about changing the ps2's laser, so now you have to jump on the band wagon...won't fly with me. moving on, people can very well be masters as using a controller and yet not know or not want to mess with an expensive piece of equipment. And you fail to see that.

Like I stated earlier, you fight for the 360 blindly and come of as an xbox fanboy. People don't want to be arsed about having to fix a broken console over and over again mk? Period, I'm not spending 400+ dollars for headaches end of story/discussion cause it's going no where.

   Re: smokeelaa - 2007-07-03
 » Ya but...

that is not the point. I could open up my 360 and throw some stuff in there to (hopefully) prevent failure, but why should I have to.

And for that matter, if I were to do that and some class-action thing does come thru, then I am stuck because I decided to open it up.

   Re: Justin (Unregistered) - 2007-07-03
 » hmmm...but?

Mister Common Sense...you make the point that things like Forza come so ready out of the box...shouldn't my system be properly cooled right out of the box too?

Why should I have to buy attachments just to keep it functioning. I love your fanboy doublespeak...because yes, you too are a fanboy...even if you like to throw it at everyone else.
   by DMan (Unregistered) - 2007-07-03
 » That's Horrible

33%, that's horrible, and sounds like they are scamming people. What are these people to do once they're warranties run out and they're 360s fail?

Microsoft is in for a heap of trouble in the future, and they are going to have to answer to some very angry people when warranties start running out and 1/3 of the people are paying $100+ to get replacements that have a 1/3 possibility of failing. I definately see a class-action suit in the works.


   Re: stunna (Unregistered) - 2007-07-03
 » well

i got another console when mine broke and they told me they are putting a 1 year warranty in the one i just got...i dont know if its a new thing they are doing
   by huh... (Unregistered) - 2007-07-03
 » Is it just me?...

Is it just me or is the P.S 3 looking mighty good right about now? With the xbox 360's breaking down and all, and having to spend an extra 140+ bucks to fix it when your warranty runs out, Isn't it better to invest that money into what you'd use in buying a 360 and buy a P.S 3 instead? Just a thought.


   Re: Stealth (Unregistered) - 2007-07-03
 » LOL good point

Yea i knew the ps3 would do great. And by this, xbox 360 is starting to turn into a Sega Dreamcast or saturn.
   by Philip (Unregistered) - 2007-07-03
 » re

Just buy a ps3, the failure rate is maybe 0,01% and you have a blu-ray player.


   Re: Mister Common Sense (Unregistered) - 2007-07-03
 » yup

Your right.

Well, after the s.e.x. party me and xman just had, i relized what a douche bag i really am! I am going to sell my 360 and get a PS3 since its got better hardware, software, and its getting more salls all over the World!

The Games are so much better for the PS3, like warhawk, lair, Ninja gaiden, GTA which is exclusive for ps3 owners, and Uncharted, MGS 4, Killzone which is way better than Gears, and also we are getting many more games than 360 this year.

.... You have.... halo 3..... Gears... Bioshock....Halo3? wow im gonna have so much fun whith this *****Box, 360. :( bad mistake in wasting 400 for something so gayyyy.

   Re: Shatterdome (Unregistered) - 2007-07-03
 » Yea

Im sorry after researching this i come to realize how stupid i am and how right this article is. I didn't realize it, Stealth your right in your last statement when you told me the truth.

   Re: Proud-To-Be-A-Satanist (Unregistered) - 2007-07-04
 » Real mature you little 2 yearolds

nice to know that their are still little babies out their who will put on a tantrum when they have people that oppose their opinion[you know who you are, you right-wing nuts]...look at the facts, yes their are Many, many problems with the 360...but i want to put one myth to rest right now THERE IS NO DISC SCRATCHING 'PROBLEM' the disc scratching occurs because Microsoft wanted to get the games too never skip or that kind of stuff so they put the laser REELY close to the disc...and now if you slightly bump your 360 it will scratch it, but you know what? you can send it in to Microsoft for around 10$ shipping and get them to put these little rubber things in their to stop the scratching for free, im not saying that the '33%' statistic is wrong but I just personally think it was pulled out of some ones ass so they could get attention[A.K.A. the weapons of mass destruction lie], and it was MY choice to get the 360 because I personally believe it has better games and better graphics...though i did play the ps3 at EB games and I will say that it kicks ASS...im even thinking of buying one, so don%u2019t think call me a 360 fanboy im a video game fanboy

BTW-you all make it out like Microsoft is so corrupt%u2026well remember how sony only gave each store around 20 ps3%u2019s at a time just to drive up the prices?
   by Chad (Unregistered) - 2007-07-03