A persistent thorn in Microsoft's side with the launch of the Xbox 360 has been the issue of hardware reliability. First-generation 360 consoles faced one of the most dismal failure rates in the history of consumer electronics, with some measures estimating the mortality rate at 16.4% of all units sold. By far the most common source of problems for 360 owners has been the so-called “Red Ring of Death” problem, which many believe is caused by continual overheating of the motherboard.
Now, more than 3 years after the original launch of the console, it appears that Microsoft may have managed to get a handle on the problem. Recent data shows that the hardware failure rate for the 360 has dropped to a more reasonable 5%. This is due to many factors, including aggressive research my Microsoft, the launch of 65nm chipset and a new, cooler motherboard termed “Falcon”.
It was also revealed that the company has a new strategy for dealing with old 360 consoles that have been returned for repair. According to IGN, the company will be swapping out old problem motherboards with a new, redesigned board that is meant to snap right into the same place as the old one. Termed “Opus”, the new Falcon-era chipset is much cooler and more reliable than the older Xenon chips, and sports an advanced heat-management system. If you have recently bought a refurbished Xbox 360, or had your returned to the factory for repairs, there is a good chance that your machine contains one of these newer motherboards.

The recent level of hardware reliability seems to suggest that the Redmond hardware manufacturer has taken the problem seriously and has had success dealing with it. We will have to wait to see if this new design stands the test of time, but for the moment it appears that most of Microsoft’s hardware woes are behind them.