Xbox 360 Failure Rate? Do the Math

July 6, 2007 -
Now that Microsoft has done the right thing about the Xbox 360's rampant hardware problems, one key question remains:

What is the failure rate for the system? MS won't say. The Seattle Times quotes MS games boss Robbie Bach (left):
Suffice it to say that with a billion-dollar charge and the focus we're putting on this that it's a meaningful number.

While normal console failures are apparently in the sub-5% range, some reports have estimated that 360's throw the red rings at a rate as high as 33%.

Here are the numbers that are known. The Times (and other sites) are reporting that MS has shipped 11.6 million Xbox 360's to date, but the failure rate remains a mystery. The addition of a three-year warranty for the rings of death failure is expected to cost MS a cool billion dollars, so:
(11,600,000 * X) * Y = 1,000,0000,000

...where 11.6m is the number of systems shipped; X is the failure rate and Y is the total cost to MS per replaced unit. This works out to:
Y=86/X 

Now, math is not especially GP's strong suit, but if each repair (Y) costs MS $100, that translates to a staggering failure rate of 86%.

At $200, the failure rate is 43%. At $300 it's 29%. At $400, it's 22%

At the high end, the $400 repair cost on a 22% failure rate is very unlikely. Since that is the current system's MSRP, why bother to repair?  They could just send you a new 360 to replace your dead one.

On the other end, the 86% scenario seems pretty extreme (perhaps not if you're one of the unfortunates who have lost multiple 360's to the dreaded rings).

There is a lot of behind-the-scenes stuff we can't know here. But, based on the numbers, a failure rate between 29% and 43% would not be unreasonable. So maybe those 33% reports aren't so far off the mark, after all.

Digg!

Comments

CONTACT SEC.GOV CONTACT INVESTORS PAGES RELEASE THE TRUTH! I NOW AWAIT MY FOURT RETURN TO GO BACK TO MC ALLEEN TEXAS WITH IS NOT MICROSOFT BUT A COMPANY CALLED JABIL JABIL.COM THEY RECENTLY PURCHASED A COMPANY IN INDIA? YOU KNOW THE PEOPLE YOU TALK TO WHEN YOU HAVE A PROBLEM!! IF ONE XBOX360 FAILS THEY ALL WILL? MICROSOFT CANT WAIT UNTILL YOUR THREE YEARS IS UP CAN YOU?

MAJORS@XBOX.COM BACH@360.COM KEEP THESE CLOWNS CHECKING THEIR EMAIL. THEY ARE MAKING MILLIONS WHILE WE COMPLAIN?

Want to start your private office arms race right now?

I just got my own USB rocket launcher :-) Awsome thing.

Plug into your computer and you got a remote controlled office missile launcher with 360 degrees horizontal and 45 degree vertival rotation with a range of more than 6 meters - which gives you a coverage of 113 square meters round your workplace.
You can get the gadget here: http://tinyurl.com/2qul3c

Check out the video they have on the page.

Cheers

Marko Fando
 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
SeanBJust goes to show what I have said for years. Your ability to have sex does not qualify you for parenthood.04/15/2014 - 9:21pm
NeenekoSo "worked" vs "failed" really comes down to who you think is more important and deserving04/15/2014 - 7:04pm
NeenekoThough I am also not sure we can say NYC failed. Rent control helped the people it was intended for and is considered a failure by the people it was designed to protect them from.04/15/2014 - 7:04pm
NeenekoIf they change the rules, demand will plummet. Though yeah, rent control probably would not help much in the SF case. I doubt anything will.04/15/2014 - 1:35pm
TheSmokeyOnline gamer accused of murdering son to keep playing - http://cnews.canoe.ca/CNEWS/Crime/2014/04/15/21604921.html04/15/2014 - 11:50am
Matthew Wilsonyup, but curent city rules do not allow for that.04/15/2014 - 11:00am
ZippyDSMleeIf SF dose not start building upwards then they will price people out of the aera.04/15/2014 - 10:59am
Matthew Wilsonthe issue rent control has it reduces supply, and in SF case they already has a supply problem. rent control ofen puts rent below cost, or below profit of selling it. rent control would not fix this issue.04/15/2014 - 10:56am
NeenekoRent control is useful in moderation, NYC took it way to far and tends to be held up as an example of them not working, but in most cases they are more subtle and positive.04/15/2014 - 10:24am
PHX CorpBeating Cancer with Video Games http://mashable.com/2014/04/14/steven-gonzalez-survivor-games/04/15/2014 - 9:21am
Matthew Wilsonwhat are you saying SF should do rent control, that has never worked every time it has been tried. the issue here is a self inflicted supply problem imposed by stupid laws.04/15/2014 - 8:52am
E. Zachary KnightNeeneko, Government created price controls don't work though. They may keep prices down for the current inhabitants, but they are the primary cause of recently vacated residences having astronomical costs. Look at New York City as a prime example.04/15/2014 - 8:50am
NeenekoI think free markets are important, but believe in balance. Too much of any force and things get unstable.04/15/2014 - 7:25am
NeenekoWell, the traditional way of keeping prices down is what they are doing, controls on lease termination and tax code, but it will not be enough in this case.04/15/2014 - 7:24am
Matthew WilsonI said that already04/14/2014 - 4:22pm
E. Zachary KnightMatthew, The could also lower prices by increasing supply. Allow high rise apartment buildings to be built to fulfill demand and prices will drop.04/14/2014 - 3:48pm
Matthew Wilsonthe only way they could keep the price's down, would be to kick out google, apple, amazon, and other tech companies, but that would do a ton of economic damage to SF, but I am a major proponent of free markets04/14/2014 - 2:54pm
NeenekoThe community people are seeking gets destroyed in the process, and the new people are not able to build on themselves. Generally these situations result in local cultural death in a decade or so, and no one wins.04/14/2014 - 2:09pm
NeenekoWell yes, that is the 'free market', but the market is only a small piece of a much larger system. The market does not always do the constructive thing.04/14/2014 - 2:06pm
Matthew WilsonWell that is the free market... they learned a valuable lesson restricting supply will drive up prices.04/14/2014 - 1:57pm
 

Be Heard - Contact Your Politician