Source: Microsoft knowingly launched a faulty Xbox 360

An "insider source" who was allegedly involved in the testing and manufacturing of the Xbox 360 claims that Microsoft rushed the console to market "when all indications were that it had serious flaws."

According to the anonymous contact close to 8bit Joystick, the dreaded Red Ring of Death is the result of a hasty and negligent Microsoft which knowingly launched a faulty console in an effort to beat Sony to market.

The purported employee claims that Xbox 360 engineering was purposely "under resourced" to cut costs and that redesigned heatsinks only band-aid the larger problem of overheating processors.

"I'm sure [Microsoft] thought that somehow they would figure it out and everything would end up okay," said the unnamed source. "They would rationalize that if the first few million boxes had a high failure rate, a few 10's of millions of dollars would cover it."

The "insider source" went on to say that 30 percent of all systems fail, and there's a chance that Microsoft may run out of replacement systems due to high demand.

Microsoft officials were not immediately available for comment when contacted by GamePro.

In July 2007, Microsoft said an abnormal number of Xbox 360 repairs would cost the company more than US$1 billion dollars.

In October 2007, 8Bit Joystick accurately reported Bungie's split from Microsoft Game Studios a week before it happened.

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