PS3 tops Xbox 360; Microsoft blames supply

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| Sony's PlayStation 3 beat Microsoft's Xbox 360 for the first time and came in
| slightly behind Nintendo's Wii in U.S. video-game console unit sales for
| January, according to numbers just released by the NPD Group market research
| firm. Microsoft hinted at the outcome yesterday when it reported that it had
| been experiencing Xbox 360 supply problems due to higher-than-expected
| holiday sales

Spin, spin, spin. Microsoft is stuffing channels and suddenly it claims to be
short on supply. It does that immediately when it emerges as the loser even in
its own back yard (United States). How many more $billions will XBox lose in
years to come?


Raikes and Other Exits

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| It's weird that Mini and all the commenters here have failed to notice the
| mass exodus from the Xbox team in 2007. By my count, more than 15% of the
| ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^^^^^^^^^^^^^^^^^^
| product team (dev/PM/test) have left Microsoft for Apple, Sony, Google,
| ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
| Yahoo, MySpace, Amazon, and various other companies (including several
| startups, local and in the Valley).


Inside Source Reveal the Truth About Xbox 360 "Red Ring of Death" Failures

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| It's around 30%, and all will probably fail early. This quarter they are
| expecting 1 M failures, most of those Xenons. Some of those are repeat
| failures. *

Microsoft Admits *ALL* Xbox360's Are Defective

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| Though Robbie Bach, head of Microsoft's Xbox360 Division refused to elaborate
| on the issue, the general consensus is that it's one of botched thermal
| design management and inadequate dissipation of heat leading to component
| failure. *

Insider Trading Hasn't Affect Microsoft Stock - Yet

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| reports that Robbie Bach, president of Microsoft's
| Entertainment and Devices division, sold $6.2 million of Microsoft
| stock just prior to announcing that Microsoft was going to have to
| extend XBox 360 warranties to three years because of extensive
| failures. The filings note that this was not part of any
| scheduled diversification or selling program; this was a
| conscious, unscheduled sale by the guy in charge of releasing
| news that could affect the value of Microsoft stock.
| [...]
| Insider trading is a very serious violation of the law; just
| ask Martha Stewart, who served five months in prison for
| avoiding losses of $43,000 through trades that just had suspicious
| timing (no insider trading was actually proven). This is $6.3
| million that went straight into Robbie Bach's pocket.

Peter Moore's parting pledge for Microsoft games an empty promise?

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| Now that we know Mr Moore has departed for greener multi-million dollar
| pastures as the head of the powerful sports games division at Electronic
| Arts, the question is was his promise of a profitable games business at
| Microsoft simply the parting words of a man who knew he would not be around
| to be held accountable for them? * *

Microsoft: XBox 360 Price Drop Won't Fix Broken Strategy

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| So in the end, it doesn’t matter if the 360 is $50 or even $100 less.
| Ultimately, the price cut will just reveal how niche the system has become.
| Exactly. Come on, guys. The blogosphere, be it the guys at GigaOM, Chris
| Kohler at Wired Game I Life or myself, have come up with some pretty rational
| approaches for how you can get it together. Unfortunately, however, our
| protestations seem to fall on deaf ears. Best of luck with your "winning
| strategy." I guess you know best. * *

XBLA's Ross Erickson leaves Microsoft, heads over to Sierra Online

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| Of course, this follows XBLA General Manager Greg Canessa's
| departure a couple weeks back. While having two of the most
| senior Xbox Live Arcade execs jump ship in a two week time
| span after a particularly long string of subpar Wednesdays
| -- nothing, Ms. Pac-Man, Lumines add-on, nothing, Root Beer
| Tapper, Paperboy, nothing -- might seem to imply certain
| disaster, Ross insisted that he and Greg's decided to
| leave under entirely different circumstances.

XBLA main man jumps ship

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| In somewhat surprising news, Greg Canessa, the big guy behind
| Xbox Live Arcade, has left the Microsoft compound for PopCap Games.

Japanese Thermal Expert Examines Xbox 360, Figures Out What's Wrong (Hint:

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| Because Microsoft will never admit to any possible overheating problems with
| their beloved Xbox 360 design, Japanese-based Nikkei hired a thermal design
| expert to come examine the console. They looked at two—one made in 2005 and
| one repaired in May 2007. *

Lawsuit claims Xbox 360s scratch discs

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| Filed on Monday in the U.S. District Court for the Southern District of
| Florida, the suit claims that Xbox 360s scratch game discs, making them
| unusable. Thousands of people have been affected by and have complained to
| Microsoft about the problem, the suit claims. *

Microsoft admits scratch problem with Xbox 360

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| There hasn't been much discussion on the fact that the problem exists
| by consumers, but untill now Microsoft has always somewhat denied the
| problem and never proposed a solution.
| The Dutch television show Kassa, which deals with customer complaints,
| has been nagging Microsoft about this problem for several weeks, they
| did tests with Xbox360 setups and filmed (and proofed) that the Xbox360
| is indeed responsible for scratching game discs, when not moved, placed
| on a stable table and under the best possible conditions.
| [...]
| The television show also reported that while this issue is now an issue
| in the Netherlands (it is also widely covered in regular news), it
| could become a global problem for Microsoft in the future. Therefore
| I would recommend anyone who is facing the same problem to contact
| their local Microsoft office and point them to this article.

European commission investigates XBOX 360 failures

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| It seems that Microsoft can't catch a break these days what with
| Vista still failing miserably and apparently so are XBOX 360's.
| [...]
| There are upwards of 1,000 complaints from the Netherlands alone
| which is going up every day. The commissioner not only wants
| answers from Microsoft Europe but from other markets as well
| and a bulleted list of all issues and problems known in
| those markets.


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| They are being financed by MS to make 360 look good to gullible people.
| [...]
| another Flaming and misleading gaming forum run by 2 previous MS employees.
| This is the forum where you have people posting "360 is the last stand for
| RPG in JAPAN" , "x360 kills ps3 in JAPAN" and getting away with it.

Microsoft facing $1bn Xbox bill

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| Microsoft, has not revealed how many of its machines have suffered the
| problem, but said the number was "bigger than we are comfortable with."

Microsoft lied about scaling chips they promised:

Owner of eight failed Xbox 360 explains failures

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| And although console gamers usually don’t come with the geeky and
| techie know-how of Banzai Runner hobbyists, an owner of eight failed
| Xbox 360s finally tapped into his inner geek and got the problem of
| the Xbox 360 issues down pat.

30% failure rate haunts Xbox 360 image

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| A recent query put to an Australian game retailer puts the figure at a
| 30% return rate.

A Tale of 11 Broken Xbox 360s

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| "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."
| * *-- Peter Moore [of Microsoft] on Xbox 360 failure rates

Microsoft deletes mass Xbox 360 crashing claims from Forza 2 forums

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| In what appears to be an effort to conceal the over 900 replies gamers
| provided on the official forums about Forza Motorsport 2
| crashing on the Xbox 360, Microsoft has deleted the long thread, now stating
| that it’s “exclusive content for registered forum users” only. However, the
| thread was removed entirely, even to registered members. * *

Anecdotal: Microsoft low on Xbox 360 coffins

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| For the most part, we've given up on reporting every single time
| one of our colleagues in the gaming press has an Xbox 360 die on
| them. Frankly, we'd be writing a piece every couple weeks. A
| brilliant recent example was the Weekly Geek Show's Xbox 360,
| which we covered, died again in late May. Exactly one month
| and six days after being "repaired." But, like Peter Moore
| asked of all of us, we shouldn't focus on the failure rate
| of Xbox 360s, but on the service in repairing them. And so,
| we have the story of Officer Craig Ravitch of the New York
| Police Department.

Gamers Say Microsoft Understates Xbox Problems

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| An insider from Electronic Arts, Inc. is saying that the failure rate
| of Microsoft's Xbox 360 gaming console is actually ten times higher than
| what Microsoft spokespeople have admitted.
| Game Daily BIZ, a gaming industry publication, reported that the
| anonymous source tallied that of the 300 consoles EA has received,
| 30-50 percent of them have failed.

Gears of War disc errors - why the hell is no one covering this?

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| So, we're all just 'unlucky' Mark? Thanks for that. I'm happy for you
| and your console, but what about us? Where are we supposed to turn to
| for help and support? Microsoft wasn't very helpful (ref #102-379-2964)
| any of the times I've called them (I think it's up to three now for the
| same issue - perhaps I'll call again today and check on an update).
| All I know is that if I see that dreaded error message again on my new
| 360 I am going to go absolutely ballistic!!!

What is the real failure rate of the Xbox 360?

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| We asked Game, one of the largest console retailers in the UK.
| "That's not information we're able to give out. It's commercially
| sensitive," it said. As for Microsoft, in the early days after the
| console's 2005 launch it claimed that failure rates were no higher
| than an industry average of between 3% and 5%. That now seems
| wildly optimistic.
| Last month, its vice-president of entertainment, Peter Moore,
| refused to answer the question, telling the Mercury News: "I
| can't comment on failure rates." According to Moore, if someone
| has a faulty console they should worry about the customer service.

360 failure rates at 61%?

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| Over at XBox 360 Gamer they have refused to buy Microsoft?s claimed
| 4-5% failure rates and instead opted to create their own poll which
| yielded shocking results. At the time of writing there have been
| 3780 submissions and 2355 comments resulting in claimed failure
| rates of 61%.
| There is no avoiding the fact that there is likely to be a negative
| skew to the poll, angry gamers are more likely to vent than satisfied
| gamers. That said 61% is a huge number and even if its half that 30%
| is a far cry from the 4-5% Microsoft would like us to believe.

Class Action Lawsuit Filed Against MS For Bricked 360s

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| According to Gamespot, the suit seeks a minimum of $10 million in
| damages, depending on how MS decides to defend itself.

Numerous Reports, November 30 Xbox 360 Update Is Bricking Consoles

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| Some consoles are being bricked by Thursday's dashboard update.
| Issues range from freezing, red ring of death and VGA adapterm
| alfunction. Microsoft isn't acknowledging the issue and billing
| $140 for repairs.

Update brick your 360? Speak up

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| Since yesterday's update, there are numerous reports about 360s
| being bricked. Some people suspect that this is being done by
| Microsoft intentionally to stop modders and hackers. Xbox Scene
| thinks it has more to do with certain combinations of hardware
| and firmware.

Autoupdate killed my 360!

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| I was fine yesterday gaming with the VGA cable but after getting
| the autoupdate today, I get a black screen. Does Microsoft test
| these things? My connection to the TV didn't change yet its
| screwed. Thanks for nothing Microsoft.

Loot: Redmond, We Have a Problem, Or, What's Wrong With the Xbox 360

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| At this point, Former becomes impassioned. That's not fair, he says;
| we always saw this as a long-term venture. To which we reply that we
| were talking about the original Xbox, and while other divisions of
| the company throw off more profits in a single quarter than the
| entire $5 billion or so lost in the home and entertainment division
| * * * *^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^^^^^^^^
| to date, the fact remains that, as we take-our-word-for-it predicted,
| the Xbox group has been spectacularly unprofitable for Microsoft.
| Hence, our heretofore unpublished Vietnam analogy. The rest of the
| night is a blur, but we digress.
| [...]
| The worst case scenario for Microsoft, then, is one in which the Xbox
| 360's bid for the mass market is blocked by the Wii for the next two to
| three years, at which point the aging and underpowered Wii gives way
| to a cheaper-than-it-is-now PS3 with a selection of AAA titles that's
| far wider than what the PS3 has at the moment; new installments of
| Playstation's own popular and casual-leaning games; and a slew of
| new franchises from Sony's much-larger studio operation.