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TheBigFatJ said:

Uh, of course they knew.

They knew about the RROD as well. They decided to push the costs of their mistakes to the consumers. That's just a business decision. It isn't that Microsoft hates you (they don't care about you, of course), it's that they thought they could save themselves more money by pretending those problems didn't exist.

 

Xbox 360 is not a portable system. It's a console. And much like your TV and DVD player, it's meant to be placed somewhere safe, and for it's orientation to remain unchanged during use. I don't blame microsoft for this.

When using a blender, if you just pick it up and tip it over, the top is likely to come off spilling it's contents. This is not the appliance maker's mistake.

They didn't push the costs of their mistakes to consumers, they pushed the cost to careless people that treat their consoles with less care/respect than any other similarly priced item in their living room.