You don't have to go far on "the Internets" to find angry consumers complaining about their Xbox 360s. No, the complaints aren't the usual ones about Microsoft (Nasdaq: MSFT). They're not about clunky interface, lack of design leadership, or unimaginative features.
They're mostly about the hardware. It sounds like too many Xbox 360s have suffered problems, from post-update "bricking" to scratched discs to the dreaded "red ring of death," the symptoms of which include a dead console and a variety of red LEDs around the power button. I'm always careful not to draw too many conclusions from limited samples. As an investor, I realize how easy it is to be fooled by randomness. Be that as it may, Microsoft's holiday-season move to lengthen the warranty seems to me to be a good indication that there's more trouble than Mr. Softy wants to admit.
Unfortunately, I may be fooled by randomness now too, because I'm a victim of Microsoft's Xbotch myself.