Microsoft has finally admitted that too many 360s have hardware problems, so anyone who gets the red circle of death can send their 360 in for free to get it replaced/fixed.
The other day my neighbor was telling me about his Xbox 360 and it's problems. Looks like the Wii's competition is dying! (BTW, there was an article on the front page of my local newspaper about the Wii.)
it's a 30% failure rate, not good. Buy yeah at least they increased everybody's warranty to 3 years so now everybody with an unmodded console has a warranty.
Either way my 360 is doing fine and I love it WAAAAAY more than my PS3 or Wii and so does everyone I know so I don't think Microsoft really dug themselves into that big of a hole especially because they're handling it decently.
Oh and by the way it's Forza Motorsport 2 that is causing the failures. So I'm pretty sure that's been patched and things SHOULD be getting better.