Xbox Troubles Revisited
... apparently some of the software on the demo discs was accidentally built with an old video library. A conflict between the finished hardware and the old library will, under certain conditions, manifest itself as the weirdness reported over the last few days. [snip]
Well that's very good news for XBox that it was indeed as many suspected, just a goofup on sending out non-final builds... an easily resolved issue. But it also as suspected that MS came out saying this is not a problem when in fact it was.
Something else to keep in mind is that the Playstation2 experienced some pretty major problems with hardware on their initial release especially in Japan. This is not some kind of "MS knows nothing type about consoles" type of problem as even (relative to MS) veterans like Sony had bad hardware going out on actual shipping products, not just demo models.
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