From TGDaily:

“Microsoft stands behind the Xbox 360 as a superior entertainment console with one of the best warranties in the industry,” TG Daily was told by a Microsoft spokesperson.

“We are constantly improving the design, manufacture and performance of the console through extensive testing of potential sources of any problems. Xbox 360 is pleased to maintain the title of ‘most played console’ and the vast majority of Xbox 360 customers have enjoyed a terrific gaming and entertainment experience since their first day, and continue to, day in and day out.”

Notice how they actually don’t discuss or even dispute the failure rate claims, instead highlighting the extensive warranty provided each console.  Is this really a smart move?

“I’m on my fifth 360 now. Like others have said, I can’t believe that there is not a higher failure rate for the 360. Everyone that I play with online have had at least 1 if not 2 RRODS,” noted PMB. “The other 45.8 percent must be consoles that are used about an hour a week to have not have failed yet. The original Xbox wasn’t much better IMAO. I had like 4 of those. Lets just face facts that Microsoft makes some crappy hardware. As far as being a loyal customer, I would buy a different console if they offered the same online experience and games that are available on the 360.”

If only Sony would pack in a headset and feature a competent online network, the hardcore console marketplace would be ripe for the taking.