Microsoft knew of the 360's problems when they released it. They figured it was okay to sell people defective hardware with a 90 day warranty and assumed they could fix it later. They'd only be screwing their early adopters, who they don't care about.
Unfortunately, they haven't been able to fix the issue yet. And it has cost up to a billion in pure repair costs and significantly more in mind share. Fortunately for MS, expectations are already very low for their hardware/software.







