so there are 10 millions x360 sold  + 2 million for repair???

so total x360 on circle are now 12 millions???

these 2 millions are the ones repaired cycling between costumers???

so these 2 millions are not really sold? 

the "phantom x360s"??? 

example:

first day

my x360 dies

i send to repair.

they send me back a new one

they lost 400$(since as you say they do not count it)

my x360 being repaired

they lost 150$ 

made change with another one from another costumer broken

now there are 3 console 

2 sold +800$

1 repaired -150$

1 new not counted -400$

from 3 consoles they "earned" 250$...

(counting total 400$ earning from a brand new x360...we know that actually they lose on each x360...)

if so...

microsoft will follow sega very soon...

On the first day they'd have just fixed your machine. Now that they have a huge backlog they use the refurbished (AKA someone else's fixed 360) machines to keep their turn around time down and get a console out to the gamer as fast as possible.  Chances are they started off with units that were returned by customers who got DOA machines.  The store replaces it with another unit, but it's not tracked as a sale.

are you sure???

i heard many friends of mine that bought x360 on first day that they delivered brand new x360...when they broken

i don't think that all x360 broken were repaired... 

 ----------------------------------------------------------------------

  Company turned away 30 consoles a week for several months

UK-based repairs specialist Micromart has told GamesIndustry.biz that it has had to refuse to service Xbox 360 consoles that display three red lights, dubbed the Red Ring of Death.

Before it put a stop to the repair service, Micromart says it was seeing around 30 consoles a week over a period of several months.

"We were seeing about 30 a week before we pulled the plug on the service," said Jeff Croft of Micromart.

"We saw it over a period of several months and it was just getting worse. It began towards the end of last year. Once the twelve month warranty finished then we started to see more and more machines being sent in to be looked at.

"The problem with three red lights was there fairly regularly, but over two or three months it became a real issue," he detailed.

Micromart acts for individual retailers who send customer's goods to the specialist. Croft says his company pulled the service after discovering problems with the motherboard, and that that repairing the console wasn't financially feasible. Even after working on a number of machines, the company didn't feel comfortable with the end result.

"The work we had done to the console lead us to believe that basically it was a fault with the motherboard and not something that could be resolved easily. And it wasn't going to go away.

"Rather than lead customers up the garden path we'd walk away from it and tell them to go directly to Microsoft because they have the facility to replace the motherboard. If Microsoft has updated the motherboard for the new consoles that its producing then presumably they've improved the existing model."

Croft said the company had written to Microsoft to inform it of the problems encountered but had received no reply.

"We're not taking that thing on board, we won't repair them. We originally did some work with it but it's labour intensive and it isn't really a feasible repair for us to undertake. We would probably end up charging GBP 100 ($180 ) for a repair and we still wouldn't be happy with the end result," he added.

Microsoft has faced a barrage of criticism over hardware failure and it's customer service. In February this year the company came under fire from the BBC's Watchdog programme, but responded that there was no systematic issue with the console.

------------------ --------- --------- --------- --------- 

this some days ago... 

to have in stock repaired x360

in other word to send me a model repaired

means that they sent to first costumer a new one

repair this and sent to me 

 i don't think theyhave already a stock of machines "repaired"...

if not

we have to cut 2.5 millions from 10 millions... 

i dont' know if explained well...

the sense is that if microsoft have "repaired x360" in stock they cannot made them from nothing...

to have in stock repaired ones that means that they returned in some cases brand news to customers...

440$ for repairing one console? that is LOL.

will now ur covered with a 3 year warrenty plan which is good ofcourse

Everyone ... the number of defective consoles is not 2.5 million. Someone just divided 1 billion by 400 and ... you get 2.5 million. But that doesn't take into account that it's possible that both Core and Elite models fail, too, and are covered in the three year warranty. No point trying to guess how many consoles failed.

Too true, there are other costs involved for the $1billion.  But don't forget, it doesn't cost Microsoft $400 to make a 360, so even if it were based on sales costs alone, it could be alot more than that and quite possibly closer to 4m.

Who knows...but in any case....it will be alot.

If MS state that it's 1 in 10...then the likelihood is that it's alot more than that. 

The replaced ones do get counted, though.

From a company perspective, selling replacement units to customers (ie. the customer goes to the store for another one) is an excellent business practice. If the PS2 showed us anything it's that customers will bend over and take it if the console has the games they want to play, no matter how many times it needs to be replaced.

The bottom line is that more console sales make the userbase look higher and it means more money for the company. If customers won't stop buying the hardware as a result, why would MS want to do something about it? 

But surely FOX news wouldn't make up figures or sensationalize it? ;)
They're not exactly renowned for their honesty.

Hardware revision confirmed:

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

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."

Although this sorta deserves it's own thread, there are already too many topics about this going around.