Yet more embarrassing news for the corporate giant as Xbox360 Elite units, once thought to be immune to the RROD, have been sent back after permanently freezing up.
The £290 consoles are being shipped to Germany for repair which apparently racks up a £500 million repair bill. Since 2005 over 12 million Xbox360's have been sold worldwide.
So far the actual cause for the fault seems to be a mystery, or something that Microsoft isn't keen to let slip to users. One Xbox360 owner says he got his "Xbox in September and it packed up eight months later in June."
"First, it kept freezing, then it developed the red ring of death," said Jamie King, from Gomshall, Surrey.
Over 230,000 Xbox steering wheel peripheral units were recalled last year after a serious of overheating complaints. Then there was the bill, around £500 million, to recall power cords that were made before 2003 because 300 or so had actually caught fire and burnt some gamers.
"The majority of Xbox 360 owners enjoy a great experience with their console," said a Microsoft spokesperson. "Anyone with a problem should call Xbox customer service."
I had to return my own Xbox360 a while ago now - fortunately it was still within the 30-days retail guarantee so I didn't need ship it overseas. The fault was with the 'power brick' overheating and I’m now always wary of stressing the unit for too long.