Xbox 360 technical problems
The Xbox 360 video game console is subject to a number of technical problems and failures that can render it unusable, with the "Red Ring of Death" (three flashing red lights instead of the up to four green lights indicating how many controllers are connected) being the most infamous, and error codes showing up after startup like E73, E74, E79, and E70 also being common.
Background
There are also other issues that arise with the console, such as discs becoming scratched in the drive and "bricking" of consoles due to dashboard updates.
Since its release on November 22, 2005, many articles have appeared in the media portraying the Xbox 360's failure rates, with the latest estimate by warranty provider SquareTrade to be 23.7% in 2009, and currently the highest estimate being 54.2% by a Game Informer survey.
The hardware failures were reduced significantly for the newer models of the Xbox 360, the Xbox 360 S and the Xbox 360 E. However the disc scratching issue was not fixed for the newer models, in fact Microsoft just added a sticker to the disc tray warning users to not move the console while a disc is in the drive for the newer models.
Reaction
There has been legal action taken attempting to hold Microsoft responsible for the Xbox 360's failure rate and provide compensation for those affected.
Three law firms in Fort Lauderdale, Florida; Los Angeles, California; and Seattle, Washington are investigating consumer complaints regarding the Xbox 360. The law firms have filed lawsuits in the United States District Court Western District of Washington at Seattle on behalf of a proposed nationwide class of customers who have suffered scratched game discs while using their Xbox 360.
The lawsuit seeks class certification and reimbursement for customers for the cost of games damaged by the console; reimbursement for customers who have paid a $20 fee to Microsoft Corporation under a limited disc replacement program offered on ten Microsoft games.