Update: According to EB games this article is incorrect.
"According to a transcript sent to the website, EB Australia has $10 million worth of defective Xbox 360's that Microsoft will not take back. EB are quite obviously frustrated by this and apparently they will no longer be stocking the Xbox 360, except for second-hand units."
"There have been threats of EB dropping the Xbox range all together," says the transcript. To recoup their losses, EB is said to be trying to repair the units and sell them second-hand. The transcript also goes on to state that EB is frustrated about losing $85 per console sold since Microsoft introduced the standard three year warranty, as EB is now unable to offer their own. The three year warranty was introduced in response to a lawsuit."
Microsoft has meanwhile responded to Kotaku: "We’re not going to comment on this."
