A week before Microsoft and Bungie split up, Jake Metcalf was the first one to report it. Today, he interviewed an unnamed Microsoft insider who revealed the secret behind the famous Xbox 360 Red Ring Of Death.
The unnamed insider confirmed that Xbox 360 failure rate is around 30% and explained that Xbox 360 "Life expectancy is all over the map because the design has very little margin for most of the important parameters. That means it's not a fault tolerant design. So a good unit may last a couple of years, while a bad unit can fail in hours."
The "source" then went into self-bashing mode: "MS was so focused on beating Sony this cycle that the 360 was rushed to market when all indications were that it had serious flaws. The design qual testing was insufficient and incomplete when the product was released to production. The manufacturing test equipment had major gaps in test coverage and wasn't reliable or repeatable. Manufacturing processes at eall levels of suppliers were immature and not in control. Initial end to end yields were in the mid 30%. Low yields always indicate serious design and manufacturing defects. Management chose to continue to ship anyways, and keep the lines running while trying to solve problems and bring the yields up. Whenever something failed and there was a question about whether the test result was false, they would remove that test, retest and ship, or see if the unit would boot a game and run briefly and then ship. 360 is too complex of a machine to get away with that."
He also explained the hardware reasons behind RROD :
"RROD is caused by anything that fails in the "digital backbone" on the mother board. Also known as a core digital error. CPU, GPU, memory, etc. Bad parts, incompatible parts (timing problems) bad manufacturing process (like solder joints), misapplied heat sinks or thermal interface material, missing parts, broken parts, parts of the wrong value, missed test coverage. Any one or more, on any chip, or many other discrete components, would cause this. And many of the failures were obviously infant mortality, where they work when they leave the factory and fail early in use. The main design flaw was the excessive heat on the GPU warping the mother board around it. This would stress the solder joints on the GPU and any bad joints would then fail in early life."