Well we have all heard about a problem with the Xbox 360 consoles and all the units that have broken down and needed repairs. Well Microsoft has admitted that there is a problem with ALL their consoles have a design defect which causes overheating.

"the general consensus is that it's one of botched thermal design management and inadequate dissipation of heat leading to component failure"

"All of the nearly 12 million units currently in the hands of consumers are effected"

This would explain why they extended the warrenty of their consoles to 3 years, however this would definately slow down the sales of the 360.

Information an be found here:

http://www.fastsilicon.com/latest-news/microsoft-admits-all-xbox360s-are-defective.html?Itemid=60