I guess rushing to market has its price. Dean Takahashi at The Mercury News:
Microsoft issued a statement today acknowledging that its early run of Xbox 360s made in 2005 were buggy and that it would rescind any repair fee on boxes that need service as long as they were manufactured before Jan. 1, 2006. The statement is in response to a raft of complaints from gamers such as Chris Szarek, whose story we told on this blog about how he went through four consoles in the repair process.
New repairs will be free, owners that have already paid for repairs will get refunds. You may remember that at the time there were some problems reported in the press and even a class action lawsuit. Nonetheless, it was undoubtedly worthwhile to Microsoft to be there first and before Christmas since the defects weren’t bad enough to earn the Xbox 360 a reputation as a lemon. On the other hand, one wonders how close it came to really bad news.