EB Games Australia: No 10M AUD Defective 360s

Retailer EB Games has hosed down reports suggesting that a spate of hardware defects with Xbox 360 video game consoles were straining its relationship with Microsoft.

A chat transcript published on the popular gaming blog Kotaku purportedly showed a high-ranking EB Games employee saying the retailer had $10 million worth of defective Xbox 360 consoles for which Microsoft refused to reimburse it.
"There have been threats of EB dropping the Xbox range all together," the transcript read.

"It's 99 per cent bullshit really," EB Games chief executive Steve Wilson said in a phone interview.
Wilson said EB Games had to recall and replace its stock of Xbox 360 units in the middle of last year, but that was an isolated "hard drive batch problem" and all defective units had been returned to Microsoft.

Wilson said EB Games had experienced high returns due to the red ring of death issue earlier in the Xbox 360's life, but the number of defective consoles had declined since Microsoft announced the extended warranty.

"Even when we had the batch problem six months ago, we were talking about a couple of thousand units," Wilson said. "$10 million is 25,000 units - that's a ridiculous number."

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