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steven787 said:
1.Publicize the New Hardware.
2.Admit problems in the past.
3.Coupon, XBLA code, or XBLA points
4.Start a system swap service like Nintendo.
5.Phone Call Follow-up.
6.Extend 3yr to full coverage instead of just RROD.

This is a good start. One problem is that they did #1 before when they claimed the issues were fixed last time and it was obviously a lie. Another big issue is #6 -- you shouldn't have to have to discern between different types of hardware failure for warranty issues. MS needs to acknoledge other widespread quality issues with the 360 -- including the disc scratching issue and checkerpattern heat-related crashes.

MS also needs to drop the price of the hardware further because they're obviously having problems competing, especially outside of the US. They should also make good on their "$50 first party games" promise that they made to gamers.

Right now, Microsoft's huge hangup is on becoming profitable. They've made mistakes which will keep them from being profitable. Rather than focusing on correcting those mistakes, they're trying to take shortcuts and get their division to profitability, which they've promised for fiscal '08. Instead of effectively fixing their mistakes, they're making them worse by trying to push them under the rug.

MS is continually deceiving the customer. My buddy's 360 died (his second failure) and they told him that the repair facility is being slow so it will take 6 weeks to get his 360 back. So he asked if it was safe to assume he'd get *his* Xbox back and not another refurb, and they said no. They'll just ship him a refurb. So why did he have to wait 6 weeks to get some random refurb back, he wanted to know. They should have been honest -- they should have said, "look, we have a ton of volume for failed units, we're unwilling to set aside money for an advance replacement program, and we won't be able to get your 360 back to you because of the massive failures on our part."

MS has squandered an insane amount of good will among the hardcore.  My buddy, who was a huge 360 fanboy, prefers his 360 over his Wii, and has piles of games, said he will never recommend a 360 to anyone he likes because he doesn't want them to have to deal with the hardware issues.  He is planning on getting a PS3 in the near future as well.

MS isn't doing anyone a favor by honoring their warranty.  They need to realize that having to send your Xbox away is an inconvenience and they should try to minimize it and compensate you for it.  Giving you a 1 month Xbox live subscription often doesn't even cover the amount of time you waited.  They should be have an option to advance ship consoles.  Basically, what MS is doing right now is shitting in your bed, then forcing you to prove they shat in your bed, then fixing it in their sweet time and trying to convince you that you should feel grateful that they cleaned the shit off of your bed.