After reviewing Xbox 360 repair data and finding "a higher than usual number of units coming in for repair," Microsoft has acknowledged quality problems with the first batch of Xbox 360s that were part of the "initial manufacturing run of the console," according to a company statement.
As a result, the company has announced free repairs for all Xbox 360s manufactured in 2005, and will issue refunds to a "small group" of customers who have already had to pay for repairs.
Click "continue" below for the full statement, as reported by Dean Takahashi on the Mercury News blog. We have independently verified the statement's authenticity with Microsoft.
"As part of our standard and ongoing process of analyzing repair data, we recently noticed a higher than usual number of units coming in for repair. Upon further investigation, it was further discovered that the bulk of the units were isolated to a group that was part of the initial manufacturing run of the console. Returns for repair are coming in for a variety reasons and it's a higher rate than we are satisfied with. We've made the decision to comp repairs for consoles manufactured before January 1, 2006, and provide refunds to the small group of customers who have already paid for repairs." -- Microsoft company statement