You made that up. The majority of broken 360s were replaced again and again by the people who bought them, but fuck the consumer, right? Didn't read the rest. The correct statement is that Microsoft offered to replace there broken shit because it was their broken shit and they were required (in some cases) to fix their boken shit... lest there wouldn't be a Xbox brand today. I suppose there are people who will actually get on their god damn knees and praise Microsoft for releasing broken shit just so they can be the good guys and fix their broken shit. OH THANK YOU MERCIFUL MASTERS!
And I don't have a problem with Microsoft. I started out analyzing their situation to respond to OP. What should Microsoft do? I gave my thoughts and some trolling corporate slaves cut their own wrists to save a dead queen. Guys, I'm not attacking Microsoft. So please calm down.
I already gave my thoughts. What do you think Microsoft should do?
Microsoft spent over a Billion bucks over a 3 year period in repairing and replacing Xbox 360's.
Think about how many Xbox 360 consoles you could buy and repair with a Billion bucks... Repairs would have been cheaper than replacing the entire consoles outright too, which was the majority of cases.
Of course you will get people who will say "stuff it" and just replace the console with a new one and ignore the warranty, but not everyone did.
Sony isn't perfect either. YLOD was a big issue, so was the hacked online, the removal of features, exploding battery's... You name it.
Consumers tend to have short memory's though, so most of that is all forgotten.