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Recently I put up an article (here: Xbox 360:General Hardware Failure really needs to be Demoted) about my latest round of issues with the General Hardware failure problem with the Xbox 360 system. These problems are yet more in the series of Xbox 360 hardware that winds up 'dead' because of just how warm the boxes get inside.
If you search around a little and research the General Hardware failure issue, you find that Microsoft basically did an exceedingly poor job of dealing with heat dissipation on the Xbox 360. They have a souped up CPU (central processing unit) and a souped up GPU (graphics processing unit) both in the system with both producing a fair amount of heat in a tightly confined space.
The Xbox 360 systems, for my taste, are somewhat poorly ventilated. That could be because of FCC requirements (shielding for RF interference), but I still wish the ventilation in the box was better. It just seems that in an effort to keep fingers out of the box (i.e., keep users from tampering with the systems) Microsoft closed the box up a bit tighter than they should have.
For many years now, heat has been the enemy and by-product of the faster CPUs and GPUs that have been going into computer systems. In a prior work environment I helped trouble shoot problems with special purpose PC devices that my employer produced and many of the problems we had with those systems were specifically heat related. Tight space + warm processor unit + poor ventilation inside the case = death for that equipment.
Microsoft sure seems to be experiencing that problem with their Xbox 360 systems. To the tune of a few billion dollars worth of set aside money to resolve the problems and extend the warranty on all (non-tampered with) Xbox 360 systems. Perhaps if they had tried harder to begin with, they could have eliminated a lot of the problems that users are now happening. Perhaps if they worked with test systems in *real world* gaming conditions with the consoles stacked in with racks of A/V (audio/visual) equipment, or sitting in rooms with 62 - 90 degrees F of ambient temperature for 6 - 12 straight hours, with temperatures fluctuating throughout the day, and changed again the next day, etc.