The famous Xbox 360 Red Ring of Death has rightfully gained its place among modern nightmares such as Microsoft's BSOD. Stories grieving about Xbox 360's RROD are spreading faster than silly YouTube videos, but Microsoft are standing their ground that those are just a "Vocal Minority".
We don't know Xbox 360's failure rate but we know that Micromart, a UK-based console repair specialist, has ceased to offer repairs on Xbox 360 consoles suffering from what they call "the dreaded 3 Red Lights fault" a.k.a. Red Ring of Death. "This problem is endemic on the Xbox 360 console and the volume has made this repair non-viable", Micromart stated on their website.
According to Micromart, Xbox 360's RROD is caused by a "fault in the motherboard" and, accordingly, they are advising RROD victims to go to Microsoft who has the facility to replace the motherboard. Micromart suspects that Microsoft has updated the motherboard for the new Xbox 360s, however they (Micromart) couldn't confirm it.