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Since I keep seeing concerns that all Microsoft did was expand the warranty, but will continue to produce 360s with the current design flaw, I thought I should post this article as a new thread.

Hardware revision confirmed:

http://arstechnica.com/news.ars/post/20070706-microsoft-shares-360-defect-information-claiming-unacceptable-numbers-of-returns-and-repairs.html

Excerpt: 

While they won't share the specific numbers of affected units, they do say it's a "meaningful number," claiming that they understand why the issue was happening and that they have made engineering changes to keep these issues from happening again. Whether they're talking about the new heatsinks people have been seeing in their systems or something new is unclear.

"Since it's multiple things, I hate to even point at design," Robbie Bach says about the defects, claiming that they're proud of their partners, and this issue is Microsoft's responsibility to fix. When asked if this is something they've been able to engineer out of the system, Bach's response is a firm "yes."