Next Generation reports on Microsoft's acceptance of responsibility for early 360 defects. While originally claiming that system failures were well within the norm for consumer electronics, they've now adopted a more service-friendly attitude. From the article: "Upon further investigation, it was further discovered that the bulk of the units were isolated to a group that was part of the initial manufacturing run of the console. Returns for repair are coming in for a variety reasons and it's a higher rate than we are satisfied with. We've made the decision to comp repairs for consoles manufactured before January 1, and provide refunds to the small group of customers who have already paid for repairs."