According to VentureBeat's own Dean Takahashi and his numerous insider sources, 68% of all the early manufactured Xbox 360 consoles were defective and Microsoft knew it. Takahashi does mention that it's common industry knowledge that "early yields on electronic goods are almost always lousy", but in the case of the 360, the problem was never fixed and production of the defective consoles went as planned.
Deus Legends Take: This is not surprising at all. I wouldn't doubt at all that this story is true. I myself am on number 3 right now and death is knocking at its door soon. I've heard of some people having to send in 15 consoles!
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