Hardware Failure

Microsoft has received a fair amount of press attention over the failure rate of it's console. Microsoft claim the failure rate is within 3-5%, which is typical of the electronics industry. Notably however, Microsoft refuse to release the exact number of failures. Due to the negative press response, Microsoft issued a new three years warranty to all Xbox 360's. But, this warranty only applies to consoles which display a "General Hardware Failure", or "Red Ring of Death", shown below,

 

Microsoft have obviously recognised problems with the 360, and have modified the components and layout of them . This had led to a reduction in the total number of failures. But, over 40% of failures are still not covered by the warranty, these include disc read, video card, hard drive, power and disc tray errors. Some of the largest retailers (GameStop) claim the 360 failure is not 3 to 5%, but is around 30 - 35%. A German magazine has claimed the problems are largely due to Microsoft manufacturing the 360 with the wrong lead-free solder. And this results in problems that are irreparable. If you are unfortunate enough to buy a defective Xbox, and it gets repaired under warranty, then Microsoft will compensate you with a one month Xbox Live gold subscription card.