Robbie Bach, president of Microsoft's entertainment and devices division, declined in an interview to say what specifically caused the failures or how high the failure rate has been, but Asian manufacturers of the Xbox 360 who have been pressured by Microsoft to lower costs by as much as 15% say that the problem is caused by poor Microsoft design and the Company buying low cost components in an effort to beat Sony.

Recently Microsoft adopted various strategies to be more cost competitive with its Xbox 360 game consoles, with moves including asking for a price reduction from Taiwan-based component makers and working with Lite-On IT for its add-on HD-DVD drive, according to sources in Taiwan.

One Asian manufacturer that SmartHouse spoke to on Friday said "Microsoft have known of this problem for a long time. They are trying to blame component manufacturers but it was a combination of bad design and them (Microsoft) wanting everything cheap. This is what caused the problem along with them wanting to beat Sony to market. A lot of manufacturers were pushed to deliver components without much testing of the components working together inside the console".

stupid M$ give cheap thing to us... fuker la... cam nie ke kempeni besor kat dunia buat untung... hmm cam nie boleh buat bangkrap kempeni ... .. tapi bill gates kaya takkan bankrap nyer..

baru ko tau M$ tu fuker.....aku dah lama tau....tu sebab aku tuuuut(censored)..x360 aku tu..sbb aku tau Bill Gates takkan bankrap punyer.....

It is really bad experience owning a 360, its not about the money problem but when u buy someting with ur hard earn cash but screw up after 1 month. Don't know what to say. My experience with PS1 and PS2 never got such problem. We were given sub standard products and have to bear all the risk.

ye lor.. i buy my PS2.. in year 2001 i think.. till now.. still dont have problem.. & PS1 (when im study at University i think around 1997).. still dont have rpoblem... that what i call Quantity + Price + Good game.. but.. 360.. arhh donno what to say la.. the most worst gaming console + lots good game =  3ROD + WTF......

That's why Uncle Bill is richer and richer and we gamers are poorer and poorer.     By the way, any electronic products made from Taiwan tak boleh guna punya. Can throw into trash bin. Why don't they just maunufacture from Korea. Damn stupid business tactic. Guess we Asian are cheap to them, you piece of trash!!!   We have to pay every content available in the markerplace still give us this type of crap.     Thanks Microsoft!!!

bcuz ps1 and ps2 are not Next Gen Consoles...u need to know that too..