You raise good points, but again this was a launch console purchased the first week 360s were available. Microsoft had not worked out all of the bugs and the launch consoles were and are prone to high rate of failure.
You miss the point of the statement. Warranty = 365-366 days, they build to try and meet that rate, using chi-square distribution of part failure, this is not new. They don't buy bullet-proof parts it's too costly, they spend the money that they think will meet their projected failures rates. This may or may not have been more than expected. According to M$ they anticipated better reliability so obvious they skrimped on the wrong side.
Second, your friend is outside warranty, even if the others had high failure rate, which has nothing to do with your friend's console.
M$' decision to extend this warranty is just like any other company's decision on such things, "which costs us less, repairing the item, or fighting the complaints and buying the PR to undo the ill feelings?"
The console failed less than one week after the warranty period had expired. While I would not complain to Toyata if my car didn't start after 106,000 miles you bet I would raise hell if the car had a major malfunction and failed to operate if it had just reached the 36,100 mile mark - presuming I didn't drive it like a 16 year old boy.
Mind explaining how that fits in with the 100K mile warranty analogy. You're inside the warranty for your example and outside for mine. Explain to me why your friend is owed anything more? It sucks, but he could've extended the warranty when he bought his first, and if he bought it from some retailers he could've bought an extended warranty even months afterwards. His decision not to pursue either of those avenues is his choice.
Extended warranties are for suckers sometimes, but anyone who can't handle things breaking the day after their MFR warranty ends, should go with them.
By the way, Toyata just replace all my ball joints 50,000 miles later. Why? They recalled them do to a manfacturing error on their part that made the ball joints prone to a higher rate of failure.
And? If ANSI or UA doesn't get involved, then it's not equivalent now is it. Higher than expected failure rates does not mean a recall is warranted, recalls are for safety reasons with cars, not because 50% of the vanity mirrors break.
Its interesting that MSFT makes $75 profit per console, but the consensus here regards the Inquirer as a both a second rate and disreputable source. He cites no source, and further disclaims that the exact numbers aren't that important.
And you cite what current sources? Give me something current to refute their statement and then you'd have something to go one.
But even still this is how M$ designed this generation's contracts, because last time companies like nV soaked M$ for every console and they couldn't reduce costs.
Also, the 360 hasn't had a die shrink yet, has it? How do you think they were able to lower the manufacturing costs?
Economies of scale. Ever make a corporate purchase? The first 1,000 cost more than the pricing of 10K, versus 100K, and as you buy more and perfect the process and pay for overhead, the overall costs come down, even without a die shrink. They made 10 million sofar, a level of efficiency is not surprising, especially since they likely get better yields on both the power PC chips, and Xenos chips, as well as HDs and Memory costs have likely come down, even the expensive eDRAM that IBM has been increasing volumes for other commercial applications.
So you tell me once again, why does M$ owe your friend and Xbox for 'customer service' reasons when it failed outside the warranty? And how do you think that 'good will' would affect the cost of my Black Xbox if M$ did that for all the people 'close to their warranty expiry'?
Yes, because it failed immediately after the warranty, it was a launch unit, and should have never left the factory. In short, it was predisposed to a premature failure. Microsoft agrees,
This is an example of the GoodWill, not a requirement. They an chose to extend that good will or not, your friend didn't have any right to it outisde of M$ own actions to generate good PR.
M$ admitted higher than normal failure rates, but still states them to be around 5% which sounds large until you look at the failure rate of other products. Like the IBM HDD case, it's more about people being vocal about the failures than how many of them happen. That it happens to people who are web connected and vocal is more of the impact than it being a truely defective product, which would have to be determined by the consumer and corporate agencies (or state attorney's offices in the US).