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I've had two friends buy new 360's arcades instead of send it in for repairs because their warranties were up and for $70 more they get a new system with another controller.

A lot of people who actually get their 360's repaired seem like the ones who get stuck with the RROD the most, so it's not that unreasonable. For all you know, he may of already had it repaired for once and this is the second or thrid time it's died. So who are you to judge?