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
 
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PHX Corp@Adam802 We'll break out the popcorn in June12/19/2014 - 9:23pm
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Matthew Wilsonhttp://arstechnica.com/tech-policy/2014/12/republicans-may-have-plan-to-save-internet-providers-from-utility-rules/ this is intreasting. congress may put net nutrality in to law to avoid title 2 classification12/19/2014 - 2:45pm
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E. Zachary KnightIf you are downloading a copy in order to bypass the DRM, then you are legally in the wrong. Ethically, if you bought the game, it doesn't matter where you download it in the future.12/19/2014 - 12:06pm
InfophileEZK: Certainly better that way, though not foolproof. Makes me think though: does it count as piracy if you download a game you already paid for, just not from the place you paid for it at? Ethically, I'd say no, but legally, probably yes.12/19/2014 - 11:20am
ZippyDSMleeAnd I still spent 200$ in the last month on steam/GOG stuff sales get me nearly every time ><12/19/2014 - 10:55am
ZippyDSMleeMaskedPixelante:And this is why I'm a one legged bandit.12/19/2014 - 10:51am
ZippyDSMleeE. Zachary Knight: I buy what I can as long as I can get cracks for it...then again it I could have gotton Lords of the Fallen for 30 with DLC I would have ><12/19/2014 - 10:50am
MaskedPixelantehttp://www.joystiq.com/2014/12/19/marvel-vs-capcom-origins-leaving-online-storefronts-soon/ Speaking of "last chance to buy", Marvel vs. Capcom Origins is getting delisted from all major storefronts. Behold the wonders of the all digital future.12/19/2014 - 9:59am
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