Asian Xbox 360 manufacturers are blaming poor console design, cheap components and a lack of testing coupled with a manic obsession by Microsoft to beat Sony as the reason for the Xbox 360 "Red Ring Of Death" probems.
Two years ago In a desperate quest for supremacy in the gaming console market and in an effort to beat Sony and then later Nintendo with their Wii console, Microsoft committed themselves to getting the Xbox 360 to market some 12 months ahead of the new Sony PS3. They also stripped costs out of the unit in an effort to undercut Sony.
Now they are paying the cost of their failed marketing exercise after the world's largest Software Company announced on Friday that they will take an A$1.3 billion to $1.4 billion charge to extend warranty coverage on repairs and replacements. The company said a months-long investigation into an "unacceptable number of repairs" to Xbox 360 consoles has helped it identify several flaws that caused the system to crash—indicated by three flashing red lights on the front dubbed the "Red Ring of Death" by gamers.
Microsoft, Xbox 360, Article