However, the Xbox 360 S and Xbox 360 E ships with a sticker informing users that moving the console while powered on poses risks, effectively removing responsibility from Microsoft.

Halo 3 Limited Edition was replaced at no cost until February 1, 2008 according to the Xbox Disc Replacement Program's main site.

Turning off the console, unplugging all power cables and plugging them back in, and restarting the console may fix this issue in some cases.

On the Xbox 360 S model, the power button utilizes a different design that does not incorporate the same style of lighting that past models used. We had changed our solder, which is the way you put the GPU and the fans, to lead-free. We think it was somehow the heat coming off the GPU was drying out some of the solder, and it wasn't the normal stuff we'd used, because we had to meet European Standards and take the lead out. Of the 171 failures, 60% were due to a general hardware failure (and thus fell under the 3 year extended warranty).

A flashing red light means that the console is overheating, similar to the two-light error code on the original model Xbox 360; however, an on-screen message also appears, telling the user that the console will automatically power off to protect itself from overheating. And of the remaining 40% which were not covered by the extended warranty, 18% were disc read errors, 13% were video card failures, 13% were hard drive freezes, 10% were power issues and 7% were disc tray malfunctions.

According to Microsoft, decreasing the disc rotation would cause games to take too much time to load from the disc, and adding a bumper in the disc tray would cost 25 cents per console—a total of about 11 million dollars and causing a delay of the Xbox 360 release.

According to reports in news media, the new Xbox 360 S design still scratches discs when the console is moved while spinning in operation.

Years after leaving Microsoft, Moore recalled preparing to tell then CEO of Microsoft, Steve Ballmer, of his planned response to the incident, "we've got to tell Steve, here's what we have to do: we need to Fed Ex an empty box to a customer who had a problem - they would call us up - with a Fed Ex return label to send your box, and then we would Fed Ex it back to them and fix it. These models indicate hardware failure differently from the original; The outer ring segments cannot turn red anymore.

Microsoft has said that henceforth errors will be displayed by the center of the power button changing from green to red.Therefore, any information available to the public has come only from third party analyses.Electronics industry newspaper EE Times reported that the problems may have started in the graphics chip.Because of the nature of the problem, Micromart could only make temporary repairs, which led to many of the "repaired" systems failing again after a few weeks. Almost at the same time the Xbox 360 was released in late 2005, customers began reporting circumferential scratches found on discs used in their Xbox 360 consoles.At that time Micromart was receiving 2,500 defective consoles per day from the U. Almost two years later, in February 2007, the Web site "The Llamma's Adventures" investigated the matter and concluded that some Xbox 360 disc drives lack a mechanism to secure the disc solidly in place.This error code is usually caused by failure of one or more hardware components, although it can indicate that the console is not receiving enough power from the power supply, which can either be due to a faulty power supply or if the power supply cable is not fully inserted into the console.