1,500 - 2,500 certainly seems like a lot, but the story just gave us supposed information from a repair center. We have no idea where all those units may come from. Perhaps it is all of Europe. It is simply *not* a coincidence that so many people have been reporting multiple failures. Consider also that Microsoft may have a stockpile of consoles they need repaired and they're just unloading them on this center.
Also consider the quality of the repaired consoles. Over in the somethingawful forums and many other places, known 360 fans are reporting getting bad refurb units or bad return units. If the failure rate is this high, it could help explain why units are going back to people, seemingly without being tested.
Now, what happens if we have significant redundancy? The attach rate goes up, and up to monumental levels. If 30 percent of consoles are replacements, then the attach rate is well over 10 games per console. Given that the attach rates are already extremely high for the 360, this quickly approaches absurdity.
More than anything else, this suggests to me that the failure rates probably aren't that high.
The attach rate is 8?! Can you provide a link to that? This suggests they sold more than 80 million pieces of software -- each game averaging more than 500k units sold. Failure rate, however, should have no bearing on attach rate. Replacements don't count as sales because:
(1) They're not sold to customers
(2) they're refurbished units. Even when refurb units are sold, they should not count as installed base units.
Also, I wonder why so many people seem to insist that many of the people claiming 360 failures are lieing. Why would they lie? What's the point? I can't imagine even the most staunch console zealot fabricating a story that significant, especially since it would open them up to libel lawsuits, etc if Microsoft challanged it and it was shown to be untrue.