Yeah they messed up. It must suck to be Shane Kim and Peter Moore when they were constantly having to field questions about the hardware's failure rate even though they were both basically on the software side of things (and Shane Kim is still having to take the questions about it). I mean they did their jobs well and it should have been the people actually responsible for the fiasco who should have been on the hotseat answering those kinds of questions.
The Xbox 360 not only has to compete with the Wii and PS3 this holiday season but also has to compete against the bad image the hardware problems have caused. It's like they're going into this holiday season to fight with one arm tied behind their back.
Since this is an ongoing train wreck they should just bite the bullet and do an actual recall. Unfortunately they waited far too long and it's getting too close to the crucial holiday season to do that but at the very least they should take all systems off store shelves and replace them with the new hardware revision. Even if they go a month in which nobody could buy a system (and likely cost them 200,000-300,000 sales that month) they would very likely more than make that back if everyone knew that any new 360 they bought didn't have the problem. It would be the perfect time to do it to since they've been shipping very few new systems into the channel.
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