Nearly one in every three Xbox 360 consoles fail, according to retailer reports
By several metrics, the Xbox 360 is the most successful console so far of this generation. Despite the startling pace of the Wii, the Xbox 360 still has the most consoles sold worldwide and the longest list of games and exclusives. For a gamer looking for online-enabled high-definition gaming today, the Xbox 360 appears to satisfy those needs.
One often overlooked factor when considering a console purchase is reliability, an area that is becoming apparent where the Xbox 360 falls short. Anecdotal evidence is heavily pointing to Microsoft’s latest console as being significantly more prone to failure than what consumers are accustomed to.
Microsoft has said before that its Xbox 360 failure rate falls within three to five percent, what it believes to be well within industry standards. Internet reports from Xbox 360 owners, however, suggest that the failure rate is much higher than that.
In an effort to gain a more accurate picture of Xbox 360 failure rate, DailyTech decided to poll retail outlets that sell the Xbox 360 and with it the option to purchase an in-store extended warranty. Out of all Xbox 360 extended warranties sold, we wanted to know how many were claimed by consumers with defective consoles, thus giving us a more accurate failures percentage.
After contacting several retailers from various regions in North America, the responses were unanimous: the Xbox 360 is the least reliable gaming console in recent history. Current EB Games or GameStop employees who offered information did so under strict anonymity, as it is against company policy to reveal such information to the public. Furthermore, our sources confirmed that EB Games revised its Canadian warranty policies during early 2007 for consoles solely due to the failure rate of the Xbox 360.
EB Games held conference calls for its Canadian stores informing them of the new policy changes and revealing alarming failure rates of the Xbox 360. “The real numbers were between 30 to 33 percent,” said former EB Games employee Matthieu G., adding that failure rate was even greater for launch consoles. “We had 35 Xbox 360s at launch I know more than half of them broke within the first six months (red lights or making circles under the game discs). Two of them were dead on arrival.”
Interestingly, Microsoft has acknowledged that the initial batch of Xbox 360 consoles made during the launch window suffer from below average reliability. In response to an overwhelming defect rate of launch consoles, Microsoft agreed to repair all machines manufactured in 2005 free of charge, and issue a refund for those who already paid for repairs of launch units up until January 1, 2006.
The three flashing red lights – commonly referred to in gaming communities as the “Red Ring of Death” – is a sign of an Xbox 360 hardware failure. The sign is apparently common enough that Microsoft has added an option to its 1-800-4MY-XBOX support line that names “three flashing red lights” specifically.
As a result of the high failure rate of the Xbox 360, EB Games corporate nearly doubled the prices of its one-year, over-the-counter warranty. While the previous warranty would give a customer a brand new console in exchange for the broken one, the new policy now states that the customer will receive a refurbished console instead. The move was made because it was becoming too costly for the retailer to give the customer a brand-new machine, which still carries a store cost close to the MSRP. The price increase and policy change wasn’t exclusive to only the Xbox 360, however, as it also applies to all other Sony and Nintendo consoles sold.
The failure rate nearing a third of all Xbox 360 consoles was found at other retailers too. A Best Buy customer service department manager, who wished to remain unnamed, said that failure rates for the console were “between a quarter to a third” of all units sold.
“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,” said the manager. “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.”
In late 2006, Microsoft boosted the warranty of all Xbox 360 consoles to one year, up from 90-days previously. For gamers who are out of warranty, however, a replacement or repair will cost Xbox 360 customers $140.
When compared against other systems, the Xbox 360 is failing at higher rates than its current competitors and predecessors. Former EB Games worker Matthieu G. said that the failure rates for all other consoles were not high enough for the retailer to consider revising its policies, and guesses that that most other console systems have a failure rate of less than one percent, including the PlayStation 3. Another EB Games manager, when asked if the store warranty was worth it, conceded that in the hundreds of Wii units sold at that location thus far, zero have come back as defective.
Despite the overwhelming evidence that the Xbox 360 is a relatively unreliable games machine, Microsoft officials refuse to comment on its failure rate. Peter Moore, VP of Microsoft’s entertainment division, said to the Mercury News, “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.”
Similar questions regarding the Xbox 360 hardware met with the man responsible for the design of the console, Todd Holmdahl. He too sidestepped the issue with the Mercury News, saying, “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.”
Asked differently about whether or not the Xbox 360 falls into the ‘normal’ three to five percent return rate, Holmdahl said, “We don’t disclose the actual number,” and “We don’t comment on that.”
No piece of technology, no matter how well designed, should be expected to completely free of failure. The key metric is whether or not a product falls within industry standards of acceptable failure rates – and from findings based off retailer-supported warranty returns, the actual rate of failures could be six to ten times greater than what Microsoft is letting on.
Regardless of what the actual failure rate is, there is consumer perception that the Xbox 360 is a less reliable machine than its competitors. That fact alone should encourage Microsoft to do more than just avoid all comments on failures and only preach on the wonderful experience of its consumer base.
Nah, it's a great system with a nice, growing library of games, but the design of the machine is fundamentally flawed.
I love my flawless xbox 360
:bow
Only thing I see on the 360 is sportgames, fps's, action and racing games.
And like you said, arguably, since I think most PC games suck.
Price drop is coming a few weeks after Halo.Okay, maybe I will get a 360 this year.
lol @ people making hubub over 360 when ps2s fucked up just as much. Everyone I know has had 2-4 ps2s in the past 7 years. No one cares though, why? Because just like ps2, 360 HAS ACTUAL GAMES. GET A WARRANTY.
once fixed by Sony, PS2s didn't constantly become dead again as fastly as 360s, and didn't die as fast as 360s did once they were taken out of the box by the user after having being bought in a brand new package... hell many 360s are dead OUT of the box!
This is why the Wii will be the only system that I get this year. I can't deal with bullshit like that. I expect something that I bought to work fine until it starts getting old or until I fuck it up somehow.
As ive said before, I may have had to replace my 360, but there are GAMES TO PLAY, and its incredible how much having games I want to play on a system takes the sting out of replacing it.A reliable system that has an awesome backwards compatibility that isn't half-assed.
Now if my PS3 died today, I would never buy another; because what has it given me so far? Honestly.
my broken ps2 is pretty awesome
oh and my newer one gets dirty disc errors constantly
thank god for hd loader :bow
you can use almost any IDE based hard drive.
Probably save some money that way too
hd loader is a free download fyi (dont buy any retail copies, it will be outdated), you need swap magic to load the disc its burned on however.
Wait!....... so the Xbox 360 came out a year earlier and therefore it has a bigger gaming library than the PS3?????
THIS IS SHOCKING
you can use almost any IDE based hard drive.
Probably save some money that way too
hd loader is a free download fyi (dont buy any retail copies, it will be outdated), you need swap magic to load the disc its burned on however.
If I buy a retail copy I will also need this...swap magic, of which you speak?
Ok, my 360 red lighted yesterday, but I turned it on today and it works. How long until it dies for real?maybe a few days. Three red lights, right?
Wait!....... so the Xbox 360 came out a year earlier and therefore it has a bigger gaming library than the PS3?????You think consumers CARE about that? They won't go
THIS IS SHOCKING
nmmy broken ps2 is pretty awesome
oh and my newer one gets dirty disc errors constantly
thank god for hd loader :bow
I have seen hd loader around but I can't find any place that still sells PS2 hard drives. :(