Here is a link to a fascinating interview with a Microsoft insider about the whole Xbox 360 Red Ring of Death issue.  The interview goes into very specific issues with the 360 about how it was rushed to market, used cheap parts and had a general lack of funding that lead to the issues we see today.  He goes out to say 30% of original 360's will fail and that the latest Falcon chip set is running at under 10% failure rate.

There is a little information about the future of the Xbox and how Microsoft has big plans down the road for their Hardware group.  Microsoft just build a new campus for these folks so I don't think you'll hear that Xbox is dead any time soon no matter how much they lose.


www.8bitjoystick.com/archives/jake_inside_source_reveal_the_truth_about_xbox_360_red_ring_of_death_failures.php