The latest news comes from DailyTech who says that the failure rate is somewhere around 33%. Now let's just slow it down and take a step back. DailyTech came to the conclusion with the use of unnamed sources and no documentation. The Microsoft version of the Pentagon Papers this is not.
But, they did put some effort into the work, which although being anecdotal, does give a better picture to the situation. DailyTech contacted retail outlets that offer in-store extended warranties and found the Xbox 360 to be the least reliable. They also mention conference calls for EB Games stores which led to warranty policy changes due to the failure rate. A former EB Games employee by the name of Matthieu G. says, "The real numbers were between 30 to 33 percent ... We had 35 Xbox 360s at launch I know more than half of them broke within the first six months (red lights or making circles under the game discs). Two of them were dead on arrival." Of course, this is referring to launch Xbox 360s, an issue Microsoft has already addressed.
The rest of the article beyond that is just a chronology of everything that's been covered before, culminating in the cringe inducing Holmdahl interview with the Mercury Times. As more and more media outlets join the bandwagon, it's amazing that Microsoft hasn't just released the numbers regarding the failure rate, which they say is less than 5%. If you were a corporation with the evidence to make this all go away and you were telling the truth, why wouldn't you just do it at this point? And the next media outlet to report on the Red Ring of Death is?