360’s Failure Rate At 16%, Report Claims

rrod16percent.jpgWow, Microsoft seems to be taking it on the chin lately. After recent reports of the 360 being outsold worldwide by the PS3, now come sad news about 360’s high failure rate.

Estimates for the now infamous “red ring of death” or RRoD if you’re hip to forum lingo (if not you just learned something!), had placed the failure rate at 30%, with retailers claiming that about one out of every three systems sold would eventually fail. But SquareTrade, a company known for handling deals in warranties for electronics, decided to do their own research and tallied up over 1000 warranty claims and found that the 360 system had a 16.4% failure rate instead. SquareTrade CEO Steve Abernethy thinks the failure rate will increase over time as more people put their system through the paces, and rack up more hours of gaming.

But there’s some good news for Microsoft as well, with Abernethy claiming that all the systems that failed were using the original motherboard and not the new Xbox 360 designs.

To put this in perspective, take in the fact that the PS3 and Wii each had 3% failure rates based on similar research.