GamePro: Thinking back to late 2005, I remember being astonished that Microsoft was able to release the Xbox 360 in such a short time. But now, unfortunately, the Xbox 360 is seeing some high failure rates. Could these failure rates be partly blamed on the rush to get the system out in '05?
Shane Kim: You know I'm not a hardware guy, and I think it's fine to speculate that it might have contributed to the failure rate. But at the end of the day, what you're talking about is a very complicated piece of consumer electronics. There are 1,700 components, 500 million transistors, and it's just a very complex high-end piece of machinery. It's very unfortunate, and we've apologized to consumers who've had issues. I think the important thing is that we're standing behind our product, and we're going to take care of the customers who have had issues.
GamePro: You say the Xbox 360 is a very complex piece of machinery, and while that's valid on one level, Sony's PS3 has equally advanced hardware... and their failure rates are pretty low. You guys outsourced both the design and the manufacturing of the Xbox 360, so is Flextronics or any other manufacturers sharing the blame on the failing Xbox 360s?
SK: No, Microsoft is taking responsibility for this. This is a Microsoft product and we're the ones that took the charge and we're the ones who are extending the warranty to our customers. It's Microsoft's responsibility full stock. I can't speak to Sony and how they built their product. They've got a much bigger product than we do. Physically it's bigger, so they made some design decisions I'm not sure we would have, but that said, I think it's way too early to say what Sony's issues will or won't be.
First of all, one of the things that we needed to do was we needed to have a critical mass in the market to be able to look at the different issues and make sure we did all of the high quality testing that we could before determining that we needed to take this extraordinary step. Sony doesn't have critical mass. [The PS3] hasn't even been in the market for a year so it's way too early to say whether they're going to run into issues of their own with respect to the hardware.