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MikeB said:

@ TheBigFatJ

Media quote:

USA Today quotes a Microsoft representative as saying that returns of faulty Xbox 360 consoles are running at between three and five per cent of those sold. Which is lower than many of the online polls, but as US games blog Kotaku says, this could be due to some people not contacting Microsoft for a return if their machine is only occasionally glitching.


http://www.games-digest.com/2005/11/xbox_360_return.html

But we know that around that time at the earlier mentioned retailers failure rates were above 30%. Also EA around the time of this claim suffered tenfold the amount of failures of the hundreds of consoles they own.


Microsoft continues to refuse to provide numbers.  Your source failed to quote USA today correctly. From the USA today:

Meanwhile, Microsoft is acting quickly to address early reports of crashes and glitches. "We are doing everything we can to take care of gamers who are having problems," says O'Donnell, who says the rate of complaints is below the 3% to 5% expected with new electronics products. (Those with problems should call 1-800-4MY-XBOX.)

http://www.usatoday.com/tech/gaming/2005-11-28-xbox-second-round_x.htm

USA today added that new electronics products have a regular rate of 3-5%. It looks like O'Donnell said that the failure rate is below the expected rate with new electronics products, which doesn't have a hard definition. You know, I think I heard this before -- oh, wait, that article was written less than two weeks after the 360 launched!