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Reporter gets stonewalled by Microsoft when asking about Xbox 360 hardware failures

Dean Takahashi, San Jose Mercury News reporter and author of two books on Xbox and Xbox 360, published in his blog a question and answer session with Todd Holmdahl, Microsoft’s corporate vice president of Gaming and Xbox Products Group. Takahashi describes Holmdahl as “ultimately responsible for the quality of the game console, having spearheaded the hardware side of both the original Xbox and the Xbox 360.” Holmdahl was previously a part of Microsoft’s hardware division, which designs the company’s branded mice and keyboards.

A hot topic ever since the launch of the Xbox 360 is the seemingly high defect rate of the console. Takahashi poses question after question regarding Xbox 360 failures to the man who ran the design and manufacturing teams for the console, only to be stonewalled on the topic of hardware yields and reliability.

On the anecdotal evidence that the Xbox 360 quality isn’t up to par, including a user who went through seven machines, Holmdahl responds, “We’re very proud of the box. We think the vast majority of people are having just a great experience. You look at the number of games they are buying, the number of accessories they are buying, the Live attach. They love the box. They continue to buy the box. That said, we take any customer issue very seriously. We continue to look into these things very deeply. You have seen we have made some changes to our customer service policy.”

Holmdahl then sidesteps a question about a normal return rate for the console by saying only, “We continue to say the vast majority of the people are really happy with it.” Asked differently about whether or not the Xbox 360 falls into the ‘normal’ three to five percent return rate, Holmdahl said, “We don’t disclose the actual number,” and “We don’t comment on that.”

Moving away from sensitive percentages, the interviewer suggests that the Xbox 360 has a higher rate of user complaints than the PlayStation 3 and the Wii, to which the Holmdahl responds, “I would go back and say the vast majority of people love their experience. We continue to go back and address all of these issues on a case by case basis. There is a vocal minority out there. We go off and try to address their issues as quickly and as pain free as possible.”

Relentless in his questioning, Takahashi poses that a high defect rate could ruin Microsoft’s business model and profits. Holmdahl retorts, “I would say we don’t have a high defect rate. The vast majority of people are really excited about their product, and that we are targeting profitability for next year.”

Regardless of what the official line is on the reliability of the Xbox 360, many of the console’s potential owners are waiting for a chip die shrink to 65nm in hopes of improved reliability. Moving from the current console’s 90nm to 65nm should mean a cooler running box that is less prone to heat issues.

Holmdahl refuses to acknowledge any reliability benefit from moving to 65nm, saying: “Whether it is 90nm or 65nm, we have a high quality bar we target... The quality is good at both of those... We continue to redesign the box, continue to drive costs out. We don’t talk about the specifics of it.”

One of the last attempts at cracking the issue of Xbox 360 hardware failures, the interviewer asks what the top reason is for a hardware return. Holmdahl parrots once again, There are no systematic issues. The vast majority of the people just love the product, have a great experience with it. When there is an issue, we get on it and address it as quickly as possible.”



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Quote...
By mdogs444 on 6/19/2007 7:26:02 AM , Rating: 5
quote:
Moving away from sensitive percentages, the interviewer suggests that the Xbox 360 has a higher rate of user complaints than the PlayStation 3 and the Wii


Im not a fanboy of any system, and do not even own one anymore. However, I'm not so sure this is a fair assessment. Being that one system has been on the market for a year longer than the two, and the total amount sold is much more, seems kind of wrong to compare rates.

However, it does seem the xbox has certain overheating issues that need to be resolved, and i havent heard anything similar for the PS3 or Wii. However, we all know the Wii is not processing or graphics intense and therefor would not overheat easily. Perhaps the PS3 was designed much better - after they saw the Xbox's flaws since the 360's were out on the market 1 year earlier.

I wish they would have gotten a bit more specific about the types of complaints. I wonder how many of those complaints fall under the category of "i tried to mod my 360 to play hacked games and now its dead" because of the updated dashboard that feels out the mods, or because they didnt know what they were doing and they broke the system.




RE: Quote...
By awer26 on 6/19/2007 8:09:38 AM , Rating: 2
Good point, but the fact that the 360 has been out an extra year is just another reason that there should not be widespread hardware failures. With a new system its more understandable, but with a non-upgradeable console, there's just no reason for so many.


RE: Quote...
By mdogs444 on 6/19/2007 8:25:31 AM , Rating: 3
I agree. Im not defending any of the manufacturers one bit. Im just simply stating that the word "complaints" is too general in this case. It can be anywhere from "I can't get this third party USB wireless module to work" to "This system sucks because I cannot play copied games", etc.

I think everyone is right that the 360 has hardware issues that need to be reworked, and its unfortunate that many people who bought the system when it came out got burned.

However, most of us, if not all, are techies here. And we know that if you buy the 1st or 2nd Revision of anything - especially NEW hardware. You are asking to get burned - and willingly taking your chances - because you are the BETA testers!


RE: Quote...
By Christopher1 on 6/19/2007 9:26:39 AM , Rating: 2
That's the reason why consoles when they first come out should be warrantied for a year or two: because you are beta-testers, as you said.


RE: Quote...
By mdogs444 on 6/19/2007 9:33:46 AM , Rating: 2
From a buyer perspective, I agree. From a corporate perspective, that could be a very costly decision. So I could se both sides.

But yes, 1 year should be standard. I dont know why anyone ran out to purchase a $400 console with only a 6-month warranty. That just screams "stupid!" to me.


RE: Quote...
By colonelclaw on 6/19/2007 11:13:54 AM , Rating: 2
i did a double-take reading this post

do i understand correctly, from reading this, that the standard guarantee on electrical goods in the US is 6 months? if so your consumer rights are being abused.

here in UK (and all over Europe), where we get ripped off by double-prices for every type of electrical goods known to man, the minimum guarantee covered by law on absolutely any kind of electrical goods is 1 year. for once you guys are getting the short end of the deal

getting back to the OP, since the internet became widespread many software companies have taken the attitude that it's better to get a product out the door early and fix it later than it is to release a fully working product late. this trend seems to have now slipped over into certain types of hardware, games consoles being among the more visible. a depressing trend indeed


RE: Quote...
By darkpaw on 6/19/2007 11:39:01 AM , Rating: 2
There is no standard garuntee here, although that may vary from state to state. Many electronics items come with 90 day warranties or less. Heck, even low end PC's from Dell and others only have 90 days now.


RE: Quote...
By mdogs444 on 6/19/2007 11:41:24 AM , Rating: 2
Goods here have various warranties by the manufacturers.

For example, then Xbox 360 when it first came out, was only a 6 month warranty. Then after all the problems came out, they did extend it to 1 year, but not until after quite a bit of fuss by the consumers.

But there are many product, like Audio/Video receivers that I have seen have 90 manu. warranties on parts, and 30 days on labor, etc. It really all comes down to the specific product & manufacturer.


RE: Quote...
By SigmaHyperion on 6/19/2007 12:44:33 PM , Rating: 1
The reason you're getting a longer warranty is because you're paying anywhere from 50-100% more for those electronic goods; and the government realized that having people pay thousands of dollars in taxes and just plain high prices, only to buy a crappy product was a bad idea and could lead to consumer backlash against the VAT. So, yeah, you better be getting something for all that extra dough. But paying all that extra money on everything you purchase it what I would call the "short end of the deal", not a warranty that's a few months shorter.


RE: Quote...
By omnicronx on 6/19/2007 12:42:42 PM , Rating: 1
well i dont know about you but if i purchased the 360 1 year warrenty from bestbuy, it came to something like 175 dollars.. now why if i were to buy a 500 dollar system would i pay over 1/3 of the price "just in case".
i would rather take the chance, and if my 360 plat dies.. go buy the core system for 400 (or cheaper) and just switch in the HD and use your previous controllers...

to me paying an extra 175$ for a woulda coulda maybe is stupid.. and ive seen cases of people buying warrenties like that and having their product die within a week or two after the extended warranty ended..

in then end electronics are always a gamble .. anyway you look at it


RE: Quote...
By mdogs444 on 6/19/2007 1:00:02 PM , Rating: 2
Although i agree they are stupid, and bigtime money makers for the retailers...

the 2-year replacement or gift card extended warranty on xbox at Circuit City is $120. So basically isntead of microsoft sending you a refurb within 1 year, you can exchange it for a brand new in the box one from circuit city.


RE: Quote...
By Hemipower on 6/19/2007 1:12:40 PM , Rating: 2
My BB product replacement was only 50 dollars. I dont know where you live but it looks like your getting ripped.


RE: Quote...
By mdogs444 on 6/19/2007 1:15:07 PM , Rating: 2
I dont own one, so I didnt personally get ripped.

However, the price i got was from Circuit City online. Best Buy's web site did not even offer any extended service plans on any of the Xbox 360's.


RE: Quote...
By Hemipower on 6/19/2007 1:47:07 PM , Rating: 2
Well if you ever get one, please do go and get one from BB. Its only 50 bucks for the 2 year on the regular 360 not the elite junk, and it will save you a ton of headache. Let BB deal with the headaches, if you don't like BB like a lot of other people, than just buy from there to screw them when your 360 breaks. I don't think any electronics store is as lenient when it comes to returning products.


RE: Quote...
By Samus on 6/19/2007 12:44:56 PM , Rating: 2
But there are no 'widespread' hardware failures. I haven't met someone who's had an XBOX fail yet, and I know half a dozen people with one, not including myself.

I'm kind of tires hearing about this, truthfully.


RE: Quote...
By hr824 on 6/19/2007 3:19:33 PM , Rating: 1
I know 3 people with x box 360's 1 has been replaced thats a 25 % failure rate. I'm just going by your.... things that happen to me in my little universe apply to the whole world...perspective on this problem.


RE: Quote...
By hrah20 on 6/19/2007 7:46:20 PM , Rating: 2
My x360 failed last saturday just like the photo on the top of this page, it shows the ring of death, I don't play that much, always have a big stand fan next to it whenever I play, I took a lot of care for my x360 and still it failed, I can see that your view of things is very different, how lucky is the people you know!, but I can't say the same around me, 5 friends had the same failure on their systems, and we're not kids anymore, I'm 37 years this july and I know how to hadle electronics,bought my X360 last november, and only took 8 months for my 360 to fail, how do you think I feel???, the only thing I can say is that this is not a Myth.


RE: Quote...
By SigmaHyperion on 6/19/2007 8:14:58 PM , Rating: 2
One of the downsides of having a big fan right next to your 360 is that you're blowing dust, and dirt, and hair, and any pethair you might have -- all right at your Xbox. You're sucking it up from all around the room and blowing it all right into the 360 which has no filters at all on it. Anything sent towards it gets sucked into it and most is deposited there inside the box never to leave again.