This topic has already been covered extensively in the media. This new story repeats old information, and contains rumors and innuendo from anonymous sources, attempting to create a new sensational angle, and is highly irresponsible.

This was Microsoft's response to San Jose Mercury News writer Dean Takahashi when he contacted them to fact-check a story about the failure rate of the Xbox 360. Note that Microsoft didn't refute any of the 35 facts Takahashi was checking.

To many of us, the shoddy workmanship of the early Xbox 360s is old news. I've been through seven Xbox returns. That's right, seven (7). But the article provides an exhaustive behind-the-scenes chronicle of cut corners, missed opportunities, and contempt for customers. It's a fascinating read. Just be warned that you're going to have to power through this paragraph:

It reminds me of the German war machine just before World War I…The German generals were intent on keeping their trains on time; but the leaders overlooked their chances for stopping the war altogether. The Schlieffen plan called for them to strike first. Once the Russians and French mobilized, the Germans had to move into action. They marched off blindly into tragedy.

(Thanks to insidegamer.nl for the cool picture!)